Edtech unicorn upGrad allocates Rs 100 crore to support Indian AI startups

Mumbai-based edtech unicorn upGrad has unveiled an incubator focused on nurturing homegrown artificial intelligence (AI) startups in India. 

The edtech firm has allocated Rs 100 crore for this initiative to boost product innovation by providing emerging startups with infrastructure and seed capital.

The move comes soon after upGrad’s recent industry and Government partnerships to equip over a million learners with hands-on AI capabilities and establish AI Centers of Excellence across the State, aiming to drive economic progress at scale.

AI Incubator launch

The new initiative, called the “upGrad AI Incubator,” is designed to help young ventures develop plug-and-play AI technologies centred on learning, skilling, and workforce development.

With this incubator, upGrad aims to encourage the creation of AI tools that can integrate easily across various industries, enhancing both scalability and efficiency.

Over the next few months, it plans to take minority stakes in about 5 to 6 AI startups, allowing it to keep track of new breakthroughs without fully acquiring any single firm.

Leveraging AI to deliver personalised and scalable educational resources, upGrad AI Incubator will build stronger adaptive learning paths, one-to-many tutoring models, and smarter assessments to reduce test fatigue while emphasizing real-world applicability.

Support for emerging startups

Ronnie Screwvala, co-founder and chairperson of upGrad, said that AI is no longer an optional skill but an essential part of India’s journey to becoming a technology disruptor.

By providing a robust platform for AI startups, the incubator will deliver a range of resources, including personalized guidance, operational support, and funding to help them grow.

Screwvala highlighted the importance of building a strong infrastructure for AI, saying it will train millions of people at various economic levels to be ready for the jobs of tomorrow.

"As AI is in its early stages, we are committed to building a robust infrastructure that supports and trains millions across all economic levels – through upskilling and nurturing ideas and talent. This move is a major augmenter for strengthening the workforce development capabilities and creating jobs of tomorrow while sending strong growth signals as a self-reliant, technologically empowered nation,” Screwvala added.