Upgrad in Talks For USD 100 Million For Udacity Acquisition

CIOTechOutlook Team | Monday, 15 January 2024, 02:35 IST

  • No Image
Ronnie Screwvala-led Upgrad Education is in the process of acquiring US online education provider Udacity. According to people familiar with the subject, the Mumbai-based edtech is also in talks with investors about raising up to $100 million, with approximately 80% going toward funding the purchase.
 
Screwvala, who owns 22.4% in Upgrad, is likely to invest his personal capital in the new investment round as well, sources said, adding that the company has pitched to external investors for about $50-60 million. The rest would be from existing investors like Temasek, as per economic times.
 
While the details of the new investment round are still being finalized, Upgrad's valuation is unlikely to rise from its previous estimate of $2.5 billion. India's edtech sector saw one of its worst periods in 2023, exacerbated by problems at Byju's that drained investor enthusiasm.
 
Upgrad is set to acquire Udacity for around $80 million, which is little less than the previously discussed $100 million value. According to sources, Upgrad intends to conclude the transaction during the current fiscal year.
 
“The due diligence at Udacity is at a very advanced level now and law firms have been appointed who are in the middle of the process,” a person aware of the details said. “The new financing being planned is linked to the Udacity deal.”
 
According to the individual, the company does not require external funding to run its current operations. Upgrad has been looking for overseas assets to increase revenue and expand its reskilling offerings.
 
“Upgrad has been involved in the deal for months now but the deal has taken longer to fructify amid the reset in the technology ecosystem worldwide,” the same person said.
🍪 Do you like cookies?

We use cookies to ensure you get the best experience on our website. Read more...