June 29, 2024: upGrad has secured Rs 287.5 crore ($35 million) to accomplish company’s growth initiatives, cover operational expenses, and support general corporate purposes, according to a filing by the online ed tech firm with the Ministry of Corporate Affairs.
The filing also revealed the issuance of 28,75,000 debentures (a mix of Non-Convertible Debentures (NCDs) and Optionally Convertible Debentures (OCDs)) with a face value of Rs 1,000 each.
EvolutionX Debt Capital, a $500 million platform established by DBS and Temasek, specializes in providing non-dilutive financing solutions to high-growth technology companies across Asia, with a focus on China, India, and Southeast Asia.
This funding strategy enables upGrad to maintain control over its operations and avoid ownership dilution often associated with equity funding.
upGrad latest debt funding follows successful rights issue in 2023
The news follows on the heels of the online ed tech platform successful rights issue in March 2023, where the Temasek-backed company raised Rs 300 crore from its existing shareholders and founders.
Founded in 2015 by Ronnie Screwvala, Mayank Kumar, and Phalgun Kompalli, upGrad has emerged as a prominent player in the Indian edtech landscape. The company offers a diverse range of educational programs, encompassing test preparation, study abroad opportunities, undergraduate degrees, and specialized courses delivered in collaboration with over 300 university partners.
While upGrad’s revenue witnessed a significant surge of 96.4% in FY23, reaching Rs 1,194 crore from the previous year’s Rs 608 crore, its losses also increased by 76%, reaching Rs 1,141 crore compared to Rs 648 crore in FY22.
The latest round of debt financing from Singapore-based investment firm EvolutionX Debt Capital. This marks upGrad’s first debt funding round of 2024.
