Kolkata: At a time when edtech platforms are booming in India, higher learning major UpGrad has raised $120 million from Temasek, a global investment company headquartered in Singapore. With this, UpGrad is speeding toward a landmark $1 billion valuation.

This is the first external funding raised by the edtech major. Since its founding six years ago in 2015, upGrad has been 100 per cent owned, funded, and run by its co-founders as a capital-efficient business.

The Mumbai-based start-up plans to use the fresh capital to further strengthen its team, scale its global market operations, bolster its technology and product capabilities, pursue M&A opportunities, expand graduate and post-graduate degree portfolio in India, and scale up operations to achieve its $2 billion revenue goal by 2026, thereby reinforcing its position as a global higher-edtech leader emerging from India. 

upGrad co-founders Ronnie Screwvala, Mayank Kumar and Phalgun Kompalli said in a joint statement, "We welcome Temasek in our mission to power career success for each and every member of the global workforce as their trusted LifeLongLearning partner and drive meaningful career outcomes. This capital will further fuel our commitment towards global expansion as well as deeper India penetration, as we march forward with our goal of making India the teaching capital of the world.”

Screwvala told Bloomberg that he expects to raise another round of capital in three to six months.

Credit Suisse acted as the exclusive financial advisor to upGrad, and Rajaram Legal acted as legal advisor.

UpGrad's current repertoire includes over 100 courses in subjects like data science, machine learning, artificial intelligence, coding, finance and law, in collaboration with universities like Michigan State University and the Indian Institute of Technology Madras. About a million learners, mainly from India as well as four dozen other countries, take courses that run from six months to two years.