Edtech unicorn upGrad has successfully concluded its acquisition of the higher education startup Talentedge. The deal, initially announced in Decembe
Edtech unicorn upGrad has successfully concluded its acquisition of the higher education startup Talentedge. The deal, initially announced in December 2021, has now been fully integrated into upGrad’s portfolio. Talentedge, valued at approximately INR 205 crore ($27 million), engaged in an almost 100% share swap transaction with upGrad, which is valued at $2 billion.
The specific financial terms of the deal have not been disclosed by upGrad, but the company stated in its press release that the deal’s value is estimated to be 3-4 times Talentedge’s revenue for the current year. Talentedge is projected to report revenue exceeding INR 130 crore this year, with plans to double its revenue in the upcoming year, as stated by the startup in its press release.
Talentedge will continue to operate under its own name but will operate within the upGrad ecosystem following the acquisition. As part of the deal, the Sekhsaria family, who were the sole owners of Talentedge, have received a stake in upGrad.
Talentedge, based in Gurugram, offers more than 60 courses in collaboration with over 20 universities, including renowned institutions such as eCornell, IIMs, XLRI, MICA, and UCLA extension, among others. It serves over 500,000 individual and corporate learners.
Notably, Talentedge had previously acquired a significant stake in Hyderabad-based GreyCampus in 2019, though the exact amount of the transaction remains undisclosed.
This acquisition represents one of the largest consolidations in the edtech sector. However, BYJU’s acquisition of Aakash Educational, a chain of physical coaching centers, for $1 billion in the previous year still stands as the largest deal in India’s edtech industry.
Founded in 2015 by Ronnie Screwvala, Mayank Kumar, Phalgun Kompalli, and Ravijot Chugh, upGrad offers higher education courses in collaboration with various universities. It became the third edtech startup in India to enter the unicorn club after BYJU’s and Unacademy. upGrad achieved this milestone after raising $185 million from Temasek and the International Finance Corporation.
However, upGrad also experienced a significant increase in losses in FY21, nearly 2.6 times higher than the previous fiscal year. It reported a consolidated loss of INR 211 crore in FY21, reflecting a 167.8% increase from INR 78.8 crore in FY20. Despite this, upGrad’s revenue from operations nearly doubled in FY21, reaching INR 302 crore, representing an 86% increase from INR 162.3 crore in FY20.
Total revenue from operations includes revenue from the sale of products and excludes financial income. In the ‘other income’ category, upGrad posted INR 60 lakh in FY21, bringing the total revenue for the fiscal year to INR 302.6 crore, a substantial rise from the INR 162.5 crore recorded in FY20.
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