Singapore’s sovereign wealth fund Temasek has injected an additional $60 million into the edtech startup Upgrad, maintaining its valuation at $2.25 billion, according to sources familiar with the development. This funding comes at a critical time as Upgrad is gearing up for an IPO within the next two years.

Strategic Moves by Upgrad

In a parallel move, Upgrad’s founder and chairman, Ronnie Screwvala, has purchased Bharti Enterprises’ 1% stake in the company for $20 million. This acquisition follows Upgrad’s 2022 stock-swap deal to acquire Centum Learning, a skilling and training solutions company. With this buyout, Screwvala now holds a 45% stake in Upgrad, further solidifying his control over the firm.

Leadership Changes

Screwvala, a veteran entrepreneur known for founding UTV, has taken a more hands-on role at Upgrad following the exit of co-founder Mayank Kumar, as reported by The Economic Times on October 16. His re-engagement aligns with Upgrad’s IPO ambitions and is expected to reassure public market investors about the company’s leadership and direction.

“The funding round has now closed. Ronnie’s increased stake reflects his commitment to the company’s future, especially with recent leadership changes,” said a source close to the developments.

Investment Landscape

Temasek and IFC continue to be significant investors in Upgrad, alongside Screwvala, who now stands among the few entrepreneurs with the largest personal stakes in a venture-backed startup. The total funding round of $80 million, which includes both the primary investment and Screwvala’s secondary share purchase, marks one of the largest recent funding rounds in the edtech sector.

Comparisons with Other Funding Rounds

This funding round is significant in a market that has seen a sharp decline in investment after the pandemic-induced boom. For context:

• PhysicsWallah recently closed a $210 million funding round.
• Executive education firm Eruditus raised $150 million at a valuation of $3.2 billion.

Prior to this equity funding, Upgrad also secured $35 million in debt financing from Evolution X, a joint venture between DBS and Temasek.

Market Trends and Challenges

Edtech startups have seen around $650 million in funding so far this year compared to $4.1 billion in 2021—the peak for the sector aided by COVID-19 tailwinds. However, this is still higher than just $315 million for edtech for all of 2023, reflecting an 87% decline from the $2.4 billion raised in 2022.

Focus on Enterprise Growth

“Centum Learning is now part of Upgrad Enterprise and that’s the fastest-growing vertical at Upgrad,” another source noted. A report from investor 360 One highlighted key achievements:

• “Upgrad achieved profitability in its skilling, reskilling, and placement services in Q4.”
• The consumer segment’s acquisition cost improved from ~30% in FY23 to ~22% in FY24.
• Non-university program revenue in Q4 FY24 grew ~22% quarter-over-quarter and ~81% year-over-year.

Educational Offerings

Upgrad has established partnerships with over 20 tier-I and tier-II universities, offering more than 70 programs across various fields including data science, management, technology, law, and digital transformation.

Future Plans

As Upgrad moves closer to its IPO, its focus on sustainable growth and profitability appears well-positioned to attract both investors and public markets. The company’s strategy emphasizes leveraging partnerships and expanding its educational offerings to meet evolving market demands.

Conclusion

With Temasek’s investment and Screwvala’s increased stake, Upgrad is poised for significant growth in the competitive edtech landscape. The combination of strategic partnerships, innovative educational solutions, and strong financial backing will likely play a crucial role in shaping Upgrad’s future trajectory as it seeks to capitalize on emerging opportunities within both domestic and international markets.

As it prepares for an IPO, Upgrad aims to solidify its status as a leader in the education technology sector while addressing challenges posed by market fluctuations and evolving consumer needs.

A federal judge in California has agreed to Google’s request to temporarily suspend his order requiring the company to overhaul its Android app store, the Play Store, by November 1. This pause is part of an ongoing antitrust lawsuit initiated by Epic Games, the maker of “Fortnite.”

Judge’s Decision and Background

San Francisco-based U.S. District Judge James Donato made this decision on Friday after Google argued that the injunction issued on October 7 would inflict harm on the company and pose “serious safety, security, and privacy risks” to the Android ecosystem. The delay allows the 9th U.S. Circuit Court of Appeals time to review Google’s separate request for a more extended pause on the judge’s order.

Temporary Relief but Not a Complete Stay

While Judge Donato granted the temporary pause, he denied Google’s request to stay the order throughout the broader appeal process in this case. In response to the ruling, Google stated:

“We’re pleased with the District Court’s decision to temporarily pause the implementation of dangerous remedies demanded by Epic, as the Court of Appeal considers our request to further pause the remedies while we appeal.”

Epic Games’ Response

Epic Games, however, referred to Donato’s ruling as a procedural step and asserted that the court made it clear that Google’s appeal lacks merit. The company accused Google of employing “fearmongering and unsubstantiated security threats” to maintain its control over Android devices and continue charging high fees.

Previous Findings Against Google

In the ongoing lawsuit, a jury found last year that Google had illegally monopolized app downloads and in-app payment methods on Android devices. Judge Donato’s order incorporated several recommendations from Epic in response to the jury’s decision. The ruling mandates that Google allow users to download third-party Android app platforms or stores from the Play Store and permit the use of competing in-app payment methods. It also prohibits Google from paying device manufacturers to preinstall its app store and from sharing revenue with other app distributors.

Google’s Position

Google has already appealed the jury’s antitrust findings to the 9th Circuit but has yet to present its arguments to the appeals court. The company maintains that it cannot be considered a monopolist since the Play Store and Apple’s App Store are direct competitors. Google also contends that Donato’s injunction would unlawfully compel the company to engage with its rivals.

Broader Implications for App Ecosystem

The implications of this legal battle extend beyond just Google and Epic Games; they could reshape how app ecosystems operate on mobile devices. If enforced, Donato’s ruling could lead to a more open environment for app distribution on Android, potentially lowering costs for consumers and increasing competition among developers.

Conclusion

As this case unfolds, it highlights ongoing tensions in the tech industry regarding market dominance and fair competition practices. The temporary pause granted by Judge Donato provides some relief for Google as it navigates these challenges but also underscores the scrutiny facing major tech companies in their operational practices.

With significant implications for developers, consumers, and competitors alike, this legal battle will likely continue to evolve as both sides prepare for further proceedings in court. As Google awaits its day in front of the appellate court, the outcome could set important precedents for how mobile platforms manage app distribution and payment methods moving forward.

Qualcomm has announced the cancellation of its Snapdragon Dev Kit, a miniature Windows on Arm PC initially slated for release in June. In an email to customers, the company stated that the mini PC “has not met our usual standards of excellence,” leading to a full refund for all pending orders.

Background on the Snapdragon Dev Kit

The Snapdragon Dev Kit had faced shipping delays for months, following an initial plan to launch alongside the first wave of Copilot Plus PCs. Despite its cancellation, Qualcomm did not elaborate on the reasons behind the extensive delay before ultimately deciding to cancel the hardware.

Developer Insights

Some developers, including Jeff Geerling, had received the Snapdragon Dev Kit prior to the announcement. Geerling conducted a teardown and review of the hardware, noting that while it offered performance comparable to Apple’s M3 Pro, it fell short due to a lack of Linux support and restrictions on reselling the device.

Speculations Surrounding Cancellation

Speculation around the cancellation suggests it could be linked to an HDMI port issue. Although the dev kit was intended to include an HDMI port, Geerling discovered that while all components for internal DisplayPort to HDMI conversion were present, the port itself was missing.

Richard Campbell, founder of the DEVIntersection conferences, hinted on a recent TWiT episode that the absence of the HDMI port may have delayed production, possibly due to failure in FCC compliance testing. Last month, Qualcomm notified customers that the device would ship with a USB-C to HDMI dongle instead.

Importance of the Dev Kit

Despite being a niche product, the dev kit was positioned as a critical tool for developers looking to port applications to Windows on Arm. Both Qualcomm and Microsoft have encouraged developers to optimize their apps for Snapdragon X Elite-powered laptops.

Progress in App Development

There has been some progress in this area, with apps like Chrome becoming native to Arm64, and Google planning to launch its Drive app on Windows on Arm later this year. Other applications, including NordVPN and ExpressVPN, also launched recently, and the Arc browser is now Arm64 native.

Broader Implications

While the gradual adoption of Windows on Arm had been viewed as a positive development, the debacle surrounding the dev kit has overshadowed these advancements. The cancellation raises questions about Qualcomm’s strategy moving forward and its ability to support developers effectively.

Upcoming Snapdragon Summit

Qualcomm is set to host a Snapdragon summit later this month, where further details regarding its plans for desktop PCs may be revealed in light of this setback. The company will likely need to address developer concerns and outline alternative solutions for those interested in building applications for its Snapdragon platform.

Conclusion

The cancellation of Qualcomm’s Snapdragon Dev Kit highlights significant challenges in bringing new technology products to market. As developers express disappointment over missed opportunities and unresolved issues, Qualcomm must navigate these hurdles carefully while maintaining momentum in its efforts toward advancing Windows on Arm.

This situation serves as a reminder of the complexities involved in hardware development, especially in rapidly evolving sectors like artificial intelligence and mobile computing. As Qualcomm pivots away from this setback, its future strategies will be crucial in determining its standing within the competitive landscape of tech innovations.