Connect with us

Entrepreneur Stories

Upgrad Raises $60 Million from Temasek at a $2.25 Billion Valuation!

Published

on

Upgrad Raises $60 Million from Temasek at a $2.25 Billion Valuation!,Startup Stories,Startup Stories India,Latest Technology News and Updates,2024 Technology News,Tech News,Upgrad,funding news,Temasek investment,startup valuation,education technology,EdTech funding,Series funding,online learning,investment round,valuation of Upgrad,venture capital,growth funding,tech startups,digital education,Upgrad Updates,Upgrad Latest News

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.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Entrepreneur Stories

Flipkart Partners with NCERT to Boost Textbook Accessibility

Published

on

Flipkart-Partners-with-NCERT-for-textbook-acceccibility

Flipkart has joined hands with the National Council of Educational Research and Training (NCERT) to enhance the accessibility of NCERT textbooks for students across India, particularly those in Tier 2 and Tier 3 cities. This strategic partnership aims to bridge the gap in access to quality education by leveraging Flipkart’s extensive reach and logistics network.

Key Benefits of the Partnership

  • Enhanced Accessibility: With this collaboration, students in remote areas can now order NCERT textbooks online and have them delivered directly to their doorstep. This initiative is particularly beneficial for families in regions where physical bookstores may be limited or non-existent.
  • Affordability: Flipkart’s platform will offer competitive prices on NCERT textbooks, making them more affordable for students and parents. Discounts and promotions may also be available, further reducing the financial burden on families.
  • Convenience: The partnership provides a seamless online shopping experience for parents and students alike. With an easy-to-navigate platform, users can quickly find and purchase the textbooks they need without the hassle of traveling to physical stores.

Alignment with Government Initiatives

This initiative aligns with the Indian government’s vision of promoting digital learning and making education more inclusive. By providing easy access to essential textbooks, Flipkart and NCERT are working together to empower students and contribute to the nation’s educational growth. This partnership supports the government’s broader goals of enhancing educational resources through technology and ensuring that quality learning materials are available to all students, regardless of their location.

Additional Context

The partnership comes at a time when there is a growing emphasis on digital education in India, especially following the disruptions caused by the COVID-19 pandemic. The shift towards online learning has highlighted the need for accessible educational resources. By collaborating with NCERT, Flipkart is not only expanding its product offerings but also playing a vital role in supporting educational equity across the country.

Authorized Sellers

Flipkart will work with authorized sellers designated by NCERT to ensure that students can easily purchase authentic NCERT textbooks through its platform. This collaboration guarantees that all textbooks are genuine and meet the quality standards set by NCERT.

Conclusion

The partnership between Flipkart and NCERT represents a significant step towards improving textbook accessibility for students in India. By leveraging technology and e-commerce capabilities, this collaboration aims to make quality educational resources more widely available, particularly in underserved regions. As both organizations work together to enhance educational outcomes, they are contributing to a more equitable learning environment that empowers students across the nation.

Continue Reading

Entrepreneur Stories

OpenAI Expands ChatGPT Advanced Voice Mode to Web Users!

Published

on

OpenAI Expands ChatGPT Advanced Voice Mode to Web Users!

OpenAI has introduced its Advanced Voice mode for ChatGPT on the web, extending the feature that was previously available only on iOS and Android apps. This announcement, made via a post on X (formerly Twitter), signifies a significant expansion of the conversational capabilities of ChatGPT to desktop users.

Enhancing User Interaction

The Advanced Voice mode aims to make interactions with ChatGPT more natural and conversational. The feature is being rolled out this week to subscribers of ChatGPT Plus, Enterprise, Teams, and Edu. Free-tier users will have to wait a few weeks to access the feature as part of a limited monthly preview.

How to Use Advanced Voice Mode on the Web

Activating the voice feature on the web is straightforward. Users simply need to click the Voice icon in the prompt window’s bottom-right corner and grant their browser permission to access their microphone. Once activated, a blue orb at the center of the screen indicates that voice chat is active.

The voice feature offers nine output voices with unique tones and personalities. OpenAI has introduced five new voices—Arbor, Maple, Sol, Spruce, and Vale—in addition to existing options like Breeze, Juniper, Cove, and Ember. These voices are designed to create a lifelike and engaging dialogue experience, each with distinct emotional tones and the ability to emphasize certain words for more natural interaction.

For instance:

  • Arbor is described as “easygoing and versatile.”
  • Ember conveys a “confident and optimistic” tone.

This nature-inspired naming reflects OpenAI’s focus on making AI interactions feel smoother and more relatable.

Usage Limits for Subscribers

While paying users gain early access to this feature, there are daily usage limits in place. Plus and Teams subscribers will receive notifications when they have 15 minutes of voice usage left for the day. Free users will receive limited monthly access to test the feature.

Kevin Weil, OpenAI’s Chief Product Officer, noted that these measures are necessary to manage resource availability as the feature scales up.

A Controversial Missing Voice

One notable absence is the previously available “Sky” voice, which was removed following legal and ethical controversies. Critics alleged that Sky bore a striking resemblance to Hollywood actress Scarlett Johansson’s voice, leading to backlash and a lawsuit against OpenAI. Johansson’s legal representatives claimed that the company lacked permission to use a voice that closely mimicked her own. In response, OpenAI suspended this feature in May 2024.

OpenAI stated that any resemblance was unintentional, but internal comments referencing the film Her, where Johansson voiced an AI assistant, added fuel to the controversy. The company has since refrained from including voices that could lead to similar disputes.

What’s Next for Advanced Voice Mode

With this introduction of Advanced Voice mode on the web, OpenAI is taking another step toward making AI interactions feel more personal and accessible. The feature promises to transform user experiences by combining natural dialogue capabilities with versatile voice options.

As the rollout continues, OpenAI is expected to refine this feature further, eventually extending it to all ChatGPT users while addressing concerns around voice replication and ethical usage.

Future Enhancements

OpenAI plans ongoing improvements based on user feedback and technological advancements. The goal is not only to enhance user experience but also to ensure compliance with legal standards regarding voice replication.

In summary, with Advanced Voice mode now available on web platforms, OpenAI reinforces its commitment to creating engaging AI experiences that cater to diverse user preferences while navigating complex ethical landscapes associated with voice technology.

Continue Reading

Entrepreneur Stories

Zepto Secures $300 Million, Doubling Its Funding Target Amid Quick Commerce Battle!

Published

on

Zepto Secures $300 Million, Doubling Its Funding Target Amid Quick Commerce Battle!

Quick commerce startup Zepto is gearing up to raise $300 million from domestic investors, doubling its initial funding target, according to a report by The Economic Times. This latest funding round underscores Zepto’s growing influence in the competitive quick commerce sector, where it competes against Zomato’s Blinkit and Swiggy’s Instamart.

Overwhelming Investor Interest

The funding round has reportedly been oversubscribed, attracting prominent Indian family offices and ultra-high net worth individuals (ultra-HNIs). This reflects strong confidence in the sector and Zepto’s potential. The company has previously raised $1 billion and continues to position itself as a leading player in the booming quick commerce market.

Previous Funding Rounds

Zepto’s recent fundraising efforts have been impressive. In June, the company raised $665 million at a valuation of $3.6 billion, marking one of the largest financing rounds in the quick commerce space this year. The Series F round was co-led by existing investors such as StepStone Group, Nexus Venture Partners, and Glade Brook Capital, with new investors like Avenir Growth and Lightspeed Venture Partners joining in.

Increased Indian Ownership

Following this round, Indian ownership in Zepto is expected to surge to approximately 35%, which includes stakes held by its founders, Aadit Palicha and Kaivalya Vohra. Sources revealed that the founders have been granted an additional 1% equity for achieving key performance milestones.

Strategic Focus on Domestic Investors

Zepto’s strategy emphasizes building a strong base of Indian investors ahead of its anticipated IPO. The company aims to deepen relationships with high-quality domestic investors as part of its preparations for going public.

Celebrity and Corporate Participation

The funding round has attracted high-profile backers, including Bollywood legend Amitabh Bachchan and cricket icon Sachin Tendulkar, highlighting the optimism surrounding Zepto’s growth. Prominent investors such as the Ravi Jaipuria-led RJ Corp, Harsh Goenka’s RPG group, and the Motilal Oswal group have also committed significant funds. Notably, Motilal Oswal reportedly increased its commitment from $40 million to over $60 million.

Diverse Investor Base

Additionally, participation from other notable figures like Ranjan Pai of the Manipal Group and Ramesh and Rajeev Juneja of Mankind Pharma further solidifies Zepto’s support from domestic heavyweights.

Valuation and Stake Sale

Zepto is reportedly selling a 6% stake at a valuation of $5 billion, reflecting its growing dominance in the quick commerce space. A source familiar with the development stated, “The round was oversubscribed, prompting Zepto to increase the total offering.”

Focus on Growth and Innovation

With 1 million daily orders, Zepto has emerged as the only large private player in the quick commerce sector, distinguishing itself from publicly listed competitors like Swiggy and Blinkit. The company plans to expand its operations significantly over the next year by opening new dark stores—mini warehouses for rapid delivery—in various cities across India.

Expansion Plans

Zepto aims to increase its number of dark stores from around 350 to 700 by March 2025. This expansion is crucial as it seeks to enhance delivery speed and efficiency while meeting rising consumer demand for quick commerce solutions.

A Bright Future Ahead

Zepto’s ability to attract significant domestic investment and its strategic focus on Indian ownership signal its readiness to scale further in the competitive quick commerce market. This funding round positions Zepto for robust growth as it prepares for its next big milestone: going public.

Market Dynamics

As competition intensifies in India’s quick commerce sector, Zepto’s aggressive expansion strategy and strong financial backing will be critical in maintaining its market leadership against rivals like Zomato’s Blinkit and Swiggy’s Instamart.

Conclusion

With a successful track record of fundraising and an ambitious growth strategy, Zepto is well-positioned to capitalize on the burgeoning demand for quick commerce services in India. The recent funding initiatives not only reflect investor confidence but also underscore Zepto’s commitment to enhancing customer experience through innovation and operational excellence.

As it gears up for an IPO, Zepto’s focus on building a robust foundation with domestic investors will play a pivotal role in its long-term success in the rapidly evolving e-commerce landscape.

Continue Reading
Advertisement

Recent Posts

Advertisement