Edtech

UpGrad Launches AI Incubator with INR 100 Crore Investment to Support Emerging Startups

• ByStartupStory     |    February 27, 2025

 upGrad, a leading edtech unicorn, has launched the upGrad AI Incubator, an initiative to nurture homegrown AI startups focused on learning, skilling, and workforce development. The company has allocated INR 100 crore to support this vision of providing seed capital and infrastructure for emerging startups.

The launch of the AI Incubator follows upGrad’s recent collaborations with industry and government bodies to equip over a million learners with AI skills and establish AI Centers of Excellence across India. The incubator is positioned as a strategic step toward bolstering AI-driven workforce development and enhancing India’s role as a global technology disruptor.

Through this initiative, upGrad plans to invest in 5-6 AI startups in the coming months, taking minority stakes to support innovation while allowing startups to operate independently. The incubator will focus on personalised learning paths, adaptive tutoring models, and intelligent assessment tools to enhance real-world applications of AI in education.

“Having AI capabilities is not a calendared program anymore; it’s a fundamental, bare-minimum skill,” said Ronnie Screwvala, Co-founder and Chairperson of upGrad. “India is sitting at an epicentre where not only do we want to disrupt but also be the disruptor. The ‘upGrad AI Incubator’ is that opportunity—a strong incubating combinator that will turbocharge our people resources and aspirations to the next phase of growth we want to see.”

Screwvala emphasised that as AI is still in its early stages, building a robust infrastructure is crucial to training millions across all economic levels. He described the incubator as a significant step toward strengthening workforce development capabilities and fostering a technologically empowered nation.

The first investment under this initiative is in ZuAI, a Bengaluru-based startup developing a 24/7 AI-powered personal tutor for students. While the investment amount remains undisclosed, this signals upGrad’s commitment to building a strong AI-driven education ecosystem.

Founded in 2015, upGrad has grown into one of Asia’s most extensive integrated learning, skilling, and workforce development platforms. The company offers online and hybrid programs in collaboration with top Indian and global universities.

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