Mumbai-based edtech unicorn upGrad, founded by Ronnie Screwvala, Mayank Kumar and Phalgun Kompalli, has successfully raised Rs 287.5 crore (approximately $35 million) in debt funding from EvolutionX, marking its first such funding round this year.
This funding round adds to upGrad’s previous total funding of over $265 million, which includes a $36.5 million right issue from Temasek, founder Ronnie Screwvala, and others in March last year.
According to regulatory filings accessed from the Registrar of Companies, upGrad’s board approved the issuance of 28,75,000 debentures at an issue price of Rs 1,000 each to raise the funds. The company plans to allocate these funds towards supporting its growth initiatives, operational expenses, and general corporate purposes.
The Temasek-backed upGrad has been actively pursuing growth opportunities, including discussions to raise $100 million for the acquisition of online education firm Udacity.
As per startup data intelligence platform TheKredible, Temasek holds the largest external stake in upGrad at 20.7%, while Ronnie Screwvala, co-founder and chairperson, retains a significant 22.4% ownership.
In 2022, upGrad expanded into the offline higher education sector, investing $30 million to establish ten global campuses across India, the US, and other regions.
Despite achieving a notable 72% increase in operational revenue to Rs 1,194 crore in FY23, up from Rs 692 crore in FY22, the company also reported an 82% rise in losses to Rs 1,114 crore in FY23. upGrad is yet to disclose its annual results for FY24.
(Source: Economic Times)