Gurugram-based Talentedge offers more than 60 courses in partnership with universities and institutes
upGrad aims to close a few more large acquisitions in India and internationally in the next one to two quarters
In 2020, upGrad acquired recruitment and staffing solutions company Rekrut India and Bengaluru-based The Gate Academy
Ronnie Screwvala-led edtech major upGrad will acquire Gurugram-based edtech platform Talentedge to cement its position in the higher education space.
The company did not disclose the deal value. However, sources said that the acquisition will be done in the range of INR 350 Cr-INR 400 Cr.
A statement from upGrad said that it has entered into an exclusive agreement to acquire Arrina Education Services, the holding company of Talentedge Education Ventures Pvt Ltd.
Speaking of the company’s acquisition plans, Gaurav Kumar, president-corporate development and M&A, upGrad said, “We are in the active stage of closing a few more large acquisitions in India as well as internationally which will be announced in the next one to two quarters.”
Talentedge is expected to report a revenue of over INR 130 Cr this year and aims to double its revenue in the coming year, said the statement.
“Talentedge will continue to work with its university & Institute partners to deliver the quality education to its learners across degree & certification programs,” said Aditya Malik, CEO & MD, Talentedge.
Gurugram-based Talentedge offers more than 60 courses in partnership with over 20 universities. It has partnered with several leading Indian and international institutes including IIMs, XLRI, MICA, eCornell, UCLA extension among others, and has more than 5,00,000 individual and corporate learners.
Founded by Malik in 2012, Talentedge had acquired a significant stake in Hyderabad-based GreyCampus for an undisclosed amount in 2019.
Mumbai-based upGrad entered the unicorn club in August this year after raising a total of $185 Mn from Temasek, International Finance Corporation. Founded by Ronnie Screwvala, Mayank Kumar, Phalgun Kompalli and Ravijot Chugh in 2015, upGrad offers higher education courses in collaboration with various universities.
In 2020, upGrad acquired recruitment and staffing solutions company Rekrut India and Bengaluru-based coaching institute The Gate Academy (TGA).
Last month, the edtech unicorn increased its employee stock option program (ESOPs) pool by 28% from its existing 17,25,810 ESOP options (UPGRAD Education-Employee Stock Option (New) Scheme, 2015) to 22,25,810 options.
Recently, it has been in the news after it filed a suit for trademark infringement against edtech startup Scaler in Delhi High Court, for allegedly using its brand name ‘upGrad’ through Google Ads. The High Court on November 29 granted an ad-interim injunction in favour of upGrad, upGrad said in a statement.
Scaler, however, has denied allegations of trademark infringement.
Growing Edtech Space
The edtech sector in India has witnessed a robust growth of late, largely on the back of the growing consumption of online education amid the pandemic.
The upward trajectory in demand has also resulted in a flurry of investments and acquisitions. The sector already has five unicorns in India.
Along with Screwvala-led upGrad, Vedantu and Eruditus too entered the unicorn club in 2021.
Last month, upGrad chairman Screwvala invested $5 Mn in the online-only school startup 21K School.
Further, Chennai-based online learning platform Veranda Learning Solutions, in November joined the queue of IPO-bound new-age digital companies in the country and has filed its draft red herring prospectus with SEBI for INR 200 Cr IPO.
According to Inc42 Plus analysis, in the first three quarters of 2021, Indian edtech startups have raised close to $3.2 Bn in investments. The edtech sector, in Q3 FY22 alone, witnessed 1.4 Bn in funding across 44 deals.
Given the uncertainty around reopening of schools, colleges and other educational institutions, edtech startups are expected to witness growth in user base and venture capital funding.
Further, Inc42 Plus analysis shows that the market size of edtech in India is estimated to grow 3.7x in the next five years, from $2.8 Bn (2020) to $10.4 Bn (2025).
