Monday, July 15, 2024

Edtech upGrad Raises Rs 287 Crore in Debt from EvolutionX

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Mumbai-based edtech unicorn upGrad has successfully raised Rs 287.5 crore (about $35 million) in debt funding from EvolutionX. This significant funding move was approved by upGrad’s board, which passed a special resolution to issue 28,75,000 debentures at an issue price of Rs 1,000 each, amounting to a total of Rs 287.5 crore.

Purpose of Fundraising

The raised capital will be primarily used for upGrad’s growth, operating expenses, and general corporate purposes. This funding aligns with company strategy to support its expansion plans and cover essential operational costs. Although the filings did not provide a detailed breakdown of the fund usage, they emphasized these key areas.

Backing from Notable Investors

To date, upGrad has secured over $700 million in funding. This includes $36.5 million raised through a rights issue from investors such as Temasek, founder Ronnie Screwvala, and others in March of the previous year. Notable investors in upGrad include TOEFL, Artisan Partners, IIFL Finance, International Finance Corporation, Kaizenvest, 360 One Asset, and Unilazer.

Growth and Financial Performance

upGrad has seen remarkable growth, with its operational revenue increasing by 72% to Rs 1,194 crore in FY23, up from Rs 692 crore in FY22. However, this growth has also led to increased losses, which rose by 82% to Rs 1,114 crore in FY23. Despite these challenges, the funding from EvolutionX is expected to bolster upGrad’s financial stability and support its ambitious growth plans.

Leadership Comments

Ronnie Screwvala, the founder of upGrad, expressed optimism about the company’s future, emphasizing the importance of this funding round in supporting upGrad’s growth and operational strategies. The infusion of capital is expected to provide a significant boost to the company’s ability to expand and innovate in the competitive edtech market.

By securing this debt funding from EvolutionX, upGrad continues to position itself as a leading player in the edtech sector, leveraging the support of its investors to drive further growth and success.

upGrad’s recent funding round of Rs 287 crore from EvolutionX marks a significant milestone in the company’s journey. With plans to use this capital for growth, operational expenses, and general corporate purposes, upGrad is well-positioned to continue its expansion and solidify its position as a major player in the edtech industry.

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