Global online higher education provider upGrad on Monday, August 9, became the newest unicorn from the country after it announced it closed a total of $185 million in a funding round, putting it at a market valuation of $1.2 billion. The company raised fresh funds from Temasek, IFC (International Finance Corporation, a sister organisation of World Bank) and IIFL.
"We are very focused on our path to being in the top three-five companies globally in edtech and serving the one billion workforce across the age group of 18-60. We are pleased with the investor interest ever since we opened up for a fundraise, and had our maiden raise from Temasek, followed by IFC and IIFL in the last 60 days," said Ronnie Screwvala, Chairperson and Co-founder, upGrad.
In April, upGrad had raised $120 million from Temasek, a global investment company headquartered in Singapore.
"We will announce further updates on M&As, and unlocking value as they unfold. Yes, the last value was at $1.2 billion but as I keep saying, we are not a fan of the tag name, unicorn. For us, it is only a means to a much larger goal," he said in a statement.
Recent reports suggested that the company is in advanced talks for a $400 million fundraise at a valuation of $4 billion.
The edtech company has earmarked $250 million for mergers and acquisitions (M&As) over the next seven-nine months, as it strengthens non-linear growth strategy. Meanwhile, upGrad is set to cross $500 million annual revenue run rate by March 2022 and is looking to raise close to $400 million at a $4 billion valuation.
Earlier this month, upGrad acquired global firm KnowledgeHut for an undisclosed sum.
KnowledgeHut, an upGrad Company, expects to cross Rs 300 crore in revenue next year, 65% of which will be from countries across North America, Middle East and South-East Asia.
As per industry estimates, there are 53 unicorns currently in India, with a tentative valuation of Rs. 1.4 lakh crore.