Exclusive: upGrad raises $35 Mn debt from EvolutionX

Edtech unicorn upGrad has raised Rs 287.5 crore (approximately $35 million) from EvolutionX. This is the first debt funding for the Mumbai-based company this year.

The board at upGrad has passed a special resolution to issue 28,75,000 debentures at an issue price of Rs 1,000 each to raise Rs 287.5 crore or $35 million, its regulatory filing accessed from the Registrar of Companies shows.

The company will use these funds for growth, operating expenses, and general corporate purposes, according to the filings.

upGrad has raised over $265 million to date including $36.5 million via right issue from Teamsek, founder Ronnie Screwala, and other in March last year.

The Temasek-backed company was reportedly in talks to raise $100 million to close the acquisition of online education firm Udacity.

According to the startup data intelligence platform TheKredible, Temasek is the largest external stakeholder with 20.7% while Upgrad’s co-founder and chairperson Ronnie Screwvala holds a major 22.4% of the company.

upGrad forayed into the offline higher education space in 2022 and invested $30 million to set up ten global campuses across India, the US, and other regions.

upGrad experienced notable growth as its operational revenue increased by 72% to Rs 1,194 crore in FY23, up from Rs 692 crore in FY22. However, alongside this growth, the company's losses also rose by 82% to Rs 1,114 crore in FY23. The company is yet to file its annual results for FY24.