Edtech unicorn upGrad raises Rs 287 crore in debt from EvolutionX, says Report

Mumbai-based edtech unicorn upGrad has reportedly raised Rs 287.5 crore (approximately $35 million) in debt funding from EvolutionX.

The board at upGrad passed a special resolution to issue 28,75,000 debentures at an issue price of Rs 1,000 each, raising the total of Rs 287.5 crore, Entrackr reported, citing the company's regulatory filings accessed from RoC.

Purpose of fundraising

The report said the raised capital will be used for the company’s growth, operating expenses, and general corporate purposes.

The funding would also help the Ronnie Screwvala-founded edtech major align with upGrad’s strategy to support its expansion plans and cover necessary operational costs. 

The filings did not specify the exact breakdown of the fund usage but emphasized these primary areas, the report said.

Backing from notable investors

So far, upGrad has raised over $700 million in funding, including $36.5 million via a right issue from Temasek, founder Ronnie Screwvala, and other investors in March last year.

Some of its notable investors are TOEFL, Artisan Partners, IIFL Finance, International Finance Corporation, Kaizenvest, 360 One Asset, and Unilazer. 

The company has experienced significant growth, with operational revenue increasing by 72% to Rs 1,194 crore in FY23, up from Rs 692 crore in FY22. However, this growth has also come with increased losses, which rose by 82% to Rs 1,114 crore in FY23.