Edtech

Temasek Invests $60 Million in Upgrad, Valued at $2.25 Billion: Report

• ByStartupStory     |    October 21, 2024

Singapore’s sovereign wealth fund Temasek has made an additional investment of $60 million in the education technology startup Upgrad, pushing the company’s valuation to $2.25 billion. This fresh capital infusion comes on the heels of reports suggesting that Temasek had acquired a 17-18% stake in VFS Global, a visa consular services firm.

In another significant move, Upgrad’s founder and chairman, Ronnie Screwvala, has reportedly bought out Bharti Enterprises’ 1% stake in the company for $20 million, according to The Economic Times. This buyout increases Screwvala’s ownership to 45%, strengthening his position as the largest shareholder. Screwvala has ambitious plans to take the company public in the next 7-8 quarters.

With major backing from prominent investors like Temasek and the International Finance Corporation (IFC), Upgrad continues to solidify its market standing.

As per the Economic Times, Upgrad is currently generating a quarterly revenue of Rs 600 crore, which projects an annual revenue of approximately Rs 2,400 crore for the ongoing financial year.

The latest $80 million funding round, which includes $60 million in equity from Temasek, marks the third-largest funding round in India’s edtech sector this year, despite the ongoing financial stress impacting the broader edtech landscape. Prior to this equity raise, Upgrad had secured $35 million in debt financing from Evolution X, a joint venture between DBS and Temasek.

Founded in 2015 by Ronnie Screwvala, Mayank Kumar, and Phalgun Kompalli, Upgrad has expanded its global footprint with a presence across North America, Europe, the Middle East, and the Asia Pacific. The startup achieved unicorn status in 2021 with a valuation of $1.2 billion.

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