upGrad earmarks Rs 50 Cr to acquire edtech firms this fiscal
Education technology firmhas earmarked Rs 50 crore for acquiring two-three peers during the current fiscal, the company said on Thursday.
Founded in 2015, Upgrad offers online programs for working professionals and claims to have over 21,500 paid subscribers.
"We are in active discussions. There are some interesting opportunities in these times and some great entrepreneurs too, and we are excited to bring those companies into upGrad as we look at growth this year," Upgrad co-founder and chairman Ronnie Screwvala said in a statement.
The company will earmark about Rs 50 crore for the future funding of these business activities, he added.
Upgrad did not disclose the name of the companies that it plans to acquire.
“It’s too early to commit which these companies are. Given that online, edtech are few of the sectors that are least affected with the overall slowdown, and also because lifelong learning is now a clear need and must-have for all undergrads and working professionals, we think the non-linear growth via acquisitions would be a good way to go to now,” Screwvala said.
Many companies, amid the current scenario are running out of staying power and money, and therefore our terms are not to pay anything to buy them but to have them onboard with us, so we can in the future fund the activity inside upGrad.
"Our specific interest for targeted companies are those that can fast-track our ambitions in the degree programs or add a whole new line of online programs to our existing range, example finance, law or medicine," Screwvala said.
The company has been awarded the title of ‘Best Tech for Education’ by IAMAI in 2019. It also received the ‘Best Education Brands’ award by The Economic Times, and has made it to LinkedIn’s ‘Top 25 Startups’ two years in a row in 2018 and 2019.
(Disclaimer: Additional background information has been added to this PTI copy for context)
Edited by Megha Reddy