Edtech startup upGrad acquires The Gate Academy, says this is the first of many M&As
Ronnie Screwvala and Mayank Kumar's upGrad plans to invest Rs 100 crore into The Gate Academy and develop 20,000 hours of content in multiple languages.
Edtech platform announced on Tuesday, November 24 that it has fully acquired The Gate Academy (TGA). According to a statement issued by upGrad, the acquisition amount remains undisclosed.
However, it stated that this is the first among a series of mergers and acquisitions that upGrad plans to announce over the next three months, in allied fields of higher education.
Additionally, upGrad plans to invest Rs 100 crore into TGA to develop 20,000 hours of content in multiple languages, providing TGA the access to at least one million test applicants, annually.
L-R: Mayank Kumar and Ronnie Screwvala. Co-Founders UpGrad
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With this acquisition, upGrad marks its entry into the test preparation market. Bengaluru-based TGA is a coaching institute with 57 centres across the country. It's 72 million hours of content is consumed by upto two lakh enrolled users for GATE and other entrance examinations for various public and government jobs.
upGrad Co-founders Ronnie Screwvala and Mayank Kumar said in a joint statement:
“We’re thrilled to onboard Ritesh (Raushan, Founder of TGA) and the team. TGA provides upGrad a non-linear growth opportunity in new-segment entry and deeper penetration in the semi-urban and rural markets, which is in line with our core vision of making Bharat employable by adopting the mantra of LifeLong Learning. With every strategic move, we are ensuring that upGrad leads from the front as India emerges as the teaching capital of the world.”
As a part of this acquisition, TGA will continue to operate with its brand name, as a subsidiary of upGrad. Founder and CEO Ritesh will continue to serve as the CEO of the subsidiary. upGrad will be providing its proprietary online learning solution and tools to TGA to enhance the learning experience for its students. Additionally, TGA will be able to leverage upGrad's sales, marketing, and content prowess.
Ritesh said in a press statement, "We aim to employ our extensive experience in both physical and online modes of teaching to create a world-class product that will bring fundamental changes in the way technology enables learning in the future."
Edited by Kanishk Singh