UpGrad, the distinguished edtech unicorn co-founded by Ronnie Screwvala, has embarked on a significant financial initiative, securing INR 287.5 crore (approximately $34.4 million) in debt funding from EvolutionX Debt Capital. This strategic move, confirmed through regulatory filings reviewed by a media outlet, underscores UpGrad’s commitment to fortify its operational capabilities and accelerate growth within the competitive global education landscape.
At an extraordinary general meeting, UpGrad’s stakeholders passed a resolution to issue 25 lakh non-convertible debentures (NCDs) and 3.75 lakh optionally convertible debentures (OCDs) to EvolutionX Debt Capital. The distribution plan allocates 3.8 lakh NCDs to EvolutionX Debt Capital India Fund I and a substantial 21.2 lakh NCDs to EvolutionX Debt Capital Master Fund I, priced at INR 1,000 per debenture. Additionally, 3.75 lakh OCDs are designated for EvolutionX Debt Capital India Fund I, reflecting a structured approach to optimize funding efficiency and strategic alignment.
The proceeds from this debt funding round are earmarked to bolster UpGrad’s growth capital initiatives, sustain operational expenses, and support general corporate functions. This financial infusion positions UpGrad to intensify its market presence, innovate educational offerings, and potentially explore strategic acquisitions or expansions, including the previously reported interest in acquiring US-based education firm Udacity.
Founded in 2015 by Ronnie Screwvala alongside Mayank Kumar, Phalgun Kompalli, and Ravijot Chugh, UpGrad has carved a niche by offering comprehensive higher education courses and skilling programs in collaboration with esteemed universities and industry experts. The edtech powerhouse has garnered substantial investor confidence, with a cumulative funding exceeding $672 million to date. Notable investors include Temasek, Lupa Systems, and the International Finance Corporation (IFC), reflecting UpGrad’s compelling growth trajectory and market leadership in digital education.
Earlier discussions regarding UpGrad’s potential $100 million fundraising for the Udacity acquisition, reported earlier this year, underscore the company’s strategic ambitions to expand its global footprint and enhance educational offerings. While updates on the Udacity acquisition progress have not been disclosed since the advanced stage discussions earlier this year, UpGrad continues to navigate strategic opportunities aligned with its mission to redefine educational paradigms worldwide.
In its latest fiscal year 2022-23 financial results, UpGrad reported a remarkable 97% surge in operating revenue to INR 1,169.6 crore from INR 595 crore in the preceding year. However, the company also disclosed a net loss increase of 76% to INR 1,141.5 crore, highlighting ongoing investments in growth initiatives and market expansion strategies.
The infusion of INR 287.5 crore debt funding from EvolutionX Debt Capital represents a pivotal milestone for UpGrad, reinforcing its financial resilience and strategic positioning amidst a dynamic educational landscape. As UpGrad navigates forward, stakeholders and industry observers anticipate continued innovation, market expansion, and transformative contributions to global education accessibility and quality.
