$100 million new fundraising round is being considered by Ronnie Screwvalas upGrad: Report

Although the specifics of the next investment round are still being worked out, it seems doubtful that Upgrad's valuation would increase from its prior estimate of $2.5 billion.It's up, Ronnie ScrewvalaThe US-based online learning startup Udacity is being acquired by Grad Education, which is nearing completion. The business is in talks with investors to raise up to $100 million in capital at the same time. The acquisition agreement will be supported with about 80% of the money obtained.Ronnie Screwvala, who owns a 22.4% share in upGrad, is reportedly considering contributing his own money to the upcoming investment round, according to Inc42. According to the publication, upGrad has also requested $50–60 million from outside investors; Temasek and other current investors are expected to provide the remaining sum.While the details of the next round of funding are still being finalized, it is unlikely that upGrad's valuation will rise from its prior estimate of $2.5 billion. In 2023, the Indian edtech industry encountered difficulties, as problems at Byju's lowered investor interest. Rumor has it that upGrad is now attempting to purchase Udacity for about $80 million, which is a little less than the previously stated $100 million.According to reports, upGrad hopes to close the deal during the current fiscal year. "The due diligence process at Udacity is currently in an advanced stage, with appointed law firms actively involved in the ongoing procedures," according to a source.

"The upcoming financing arrangements are intricately tied to the Udacity deal." The source went on to say that running the current firm does not currently require outside funding. UpGrad has been aggressively searching for foreign assets to increase its earnings and improve its reskilling services.A different source emphasized the importance of the valuation at which upGrad obtains fresh funding, given the recent global reassessment of edtech valuations. "A flat valuation agreement appears to be pretty favorable at this point. According to media reports, a source stated that companies exhibiting strong revenue growth and distinct routes to profitability have been granted a marginal premium over their prior valuations. UpGrad was founded in 2015 and has funded a total of $365 million, the most recent $36.4 million being from a rights issue in March of that year. Among the notable investors are James Murdoch and Uday Shankar, the former chairman of Star India, through their joint venture, Bodhi Tree. UpGrad recorded a significant 96% rise in income for the fiscal year that ended in March 2023, reaching Rs 1,194Even though the US-based company's enterprise division generates the majority of its income, keeping customers has proven to be a difficult task. Sebastian Thrun founded Udacity, which was valued at $1 billion in 2015 following the acquisition of $105 million in capital from investors including Scotland's Baillie Gifford and Germany's Bertelsmann. Among its noteworthy investors is Andreessen Horowitz, popularly known as a16z, in Silicon Valley.In addition to founding Udacity, Sebastian Thrun is credited with founding Google X, where he worked on innovative initiatives including Google Glass and self-driving cars. In a recent statement about the FY23 financials, UpGrad's co-founder and managing director, Mayank Kumar, said that the company is still committed to looking into both organic and inorganic expansion opportunities.