- Issues 25 lakh non-convertible debentures and 3.75 Lakh optionally convertible debentures to the investor.
The announcement by upGrad of Rs287.5 crore (approximately $35 million) in debt funding from EvolutionX underscores its unwavering commitment to driving educational transformation.
As the first debt funding for the Mumbai-based company this year, the strategic move signifies upGrad’s ability to secure the necessary resources to fuel its ambitious growth plans.
The company’s regulatory filing reveals that the funds will be utilised for many purposes, including expansion, operational expenses, and general corporate initiatives, all designed to strengthen its position in the edtech arena.
The issuance of 2.88 million debentures at an issue price of Rs1,000 each highlights the confidence that EvolutionX Debt Capital India Fund I and EvolutionX Debt Capital Master Fund I have placed in upGrad’s potential.
The debt funding complements the company’s previous capital-raising endeavours, which include a $36.5 million right issue from Temasek, founder Ronnie Screwvala, and other investors last year.
With a total funding exceeding $672 million to date including $36.5 million via right issue from Teamsek, founder Ronnie Screwala, and others in March last year, upGrad has positioned itself as a formidable players in the edtech ecosystem
The Temasek−backed company′s reported plans to raise an additional $100 million to facilitate the acquisition of online education firm Udacity further underscores its strategic vision and ambition to expand its reach and offerings.
The company’s growth trajectory is impressive, with a 72 per cent increase in operational revenue, reaching Rs1,194 crore in FY23, up from Rs692 crore in the previous fiscal year.
However, this rapid growth has also been accompanied by a significant loss rise, which surged by 82 per cent to Rs 1,114 crore in FY23. As the company navigates the challenges of scaling its operations, it will be crucial for upGrad to strike a balance between revenue growth and cost optimisation to ensure long-term sustainability.
Notably, upGrad’s foray into the offline higher education space in 2022 marked a strategic shift, as the company invested $30 million to establish ten global campuses across India, the US, and other regions. This diversification into the physical education domain underscores upGrad’s commitment to providing a comprehensive and integrated learning experience for its students.