GST Officials Conduct Routine Survey at upGrad’s Mumbai Office

• ByStartupStory     |    July 20, 2023

Goods and Services Tax (GST) officials visited the Mumbai office premises of edtech unicorn upGrad on July 19 for a routine survey, the company confirmed in a statement.

“It’s a routine survey, and we are fully compliant and cooperating with the department,” said Koell Hemdev, Head of Legal at upGrad, without disclosing further details.

This marks the second occasion where a startup has drawn the attention of government authorities. In April, India’s most-valued startup, Byju’s, faced scrutiny when the Enforcement Directorate (ED) conducted searches at three of their office locations. Subsequently, in June, Byju’s also fell under the scrutiny of the Ministry of Corporate Affairs (MCA).

Founded in 2015 by Ronnie Screwvala, Mayank Kumar, and Phalgun Kompalli, upGrad operates a higher education platform for working professionals. The company has raised more than $400 million in equity to date, with backing from investors such as Singapore’s Temasek Group, IFC Asset Management, and James Murdoch’s Lupa Systems.

In FY22, upGrad reported a widening loss of Rs 626 crore as its employee benefit costs surged close to Rs 400 crore. However, the company also reported an over two-fold increase in FY22 revenue to Rs 682.21 crore on a consolidated basis. In a previous interview with Moneycontrol in August last year, Mayank Kumar had stated that upGrad would achieve profitability if it refrains from further acquisitions.

Over the past year, upGrad has been actively acquiring startups to expand its offerings. It has acquired more than 11 startups, and in August last year, the company raised a significant $210 million funding round, raising its valuation to nearly $2.25 billion. Additionally, upGrad secured Rs 300 crore in an internal funding round from Temasek, Ronnie Screwvala, and other existing shareholders in March this year.

The routine survey by GST officials is a standard procedure, and upGrad continues to work towards its mission of providing quality education to working professionals while adhering to all regulatory requirements.

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