Edtech startup upGrad acquires Impartus, commits Rs 150 Cr for growth
Mumbai-based edtech startuphas acquired , a video-enabled learning solutions provider. As part of the deal, upGrad has committed over Rs 150 crore for the buyout and to invest in Impartus’ growth. The institutional investor to partner with Impartus for the deal was Kaizenvest.
With this acquisition, upGrad, which predominantly focuses on working professionals, will now be able to strengthen its presence among HigherEd institutions & learners, which is a Rs 560 billion market, as stated in a company statement.
Ronnie Screwvala, Chairman & Co-founder, upGrad, said, "Our M&A strategy is focused on creating a career ecosystem and in helping build the blocks for India to emerge as the teaching capital of the world.”
Impartus is now ‘upGrad Campus’
Impartus, now a subsidiary of upGrad, has been integrated into the company and has been rebranded as ‘upGrad Campus’. In its new avatar, upGrad Campus will target HigherEd institutions and college students. It is looking to close FY22 with around Rs 85 crore revenue, with the founders continuing to run and grow the business independently.
Founded by three IIT-graduates -- Amit Mahensaria, Alok Choudhary, and Manish Kumar, Bengaluru-based Impartus develops innovative technology solutions for education, with their core feature being virtual classrooms.
Impartus was one among the many front-runners in allowing schools and colleges to migrate online at zero cost when the pandemic broke in 2020. The platform has successfully on-boarded over 280 higherEd institutes, 50,000 teachers, and 6 lakh learners within a short span of seven years.
“The synergy of Impartus and upGrad will pave the way for augmenting college education by helping learners upskill with new-age courses, thus elevating their candidature for better career prospects,” said Amit Mahensaria, CEO, upGrad Campus.
Way ahead with upGrad campus
Given the market opportunity, upGrad expects this move will enable the company to add 50,000 paid learners in the very first year of the acquisition.
Impartus CEO Amit Mahensaria will continue as the CEO of upGrad Campus, as the subsidiary continues to operate independently, targeting around 37.4 million students that are enrolled in the higher education sector in India, according to MHRD.
According to the company, upGrad Campus will now have two business verticals -- B2C and B2B. Under B2C, it'll be offering job-oriented courses in areas of Full Stack Development, Artificial Intelligence, Digital Marketing, Business Analytics, etc.
Its B2B offerings will be to HigherEd Institutions (HEI). As their B2B SaaS partner, upGrad Campus will enable them to launch for-credit online courses. These will include new-age courses as well as the college's core courses in engineering, management, and others. B2B services will also include providing a Technology Platform and Services (course mapping, placements, industry projects, placement services etc.), all with an aim to make college students employable.
“Aligned with our vision, upGrad Campus will bolster our presence in the university education space and help the youth of Bharat learn the necessary skillset to become more employable and join the workforce as leaders of tomorrow,” added Ronnie.
Earlier in April this year, upGrad raised $120 million from Singapore-based Temasek, stepping ahead in the race to become the next unicorn from the edtech sector.