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UpGrad sees revenue of Rs 1,900 crore in FY22


Bengaluru: Upskilling and higher learning edtech upGrad is expecting to close the current financial year (FY22) with consolidated revenues of Rs 1900 crore, and has hit overall profitability in the current quarter, company co-founder and chairperson Ronnie Screwvala told ET in an interaction.


In FY21, ending March 31, 2021 upGrad had reported a consolidated revenue of Rs 302.26 crore, and net losses of Rs 211 crore, according to the company’s regulatory filings. With the fourth quarter (January – March) of the ongoing fiscal (FY22) being profitable, upGrad expects to curtail losses to about Rs 150 crore in FY22.

UpGrad’s peer Eruditus reported revenues of almost Rs 961 crore in FY 21, with annual losses for the firm also rising to Rs 1994 crore, for the same period.

For upGrad, the expected revenue growth comes on the back of the company making close to five acquisitions in the current fiscal year, contributing to its topline. This financial year, the company announced the acquisition of Impartus Innovations, KnowledgeHut, Talentedge, Work Better Training as well as Global Study Partners.

Screwvala also said that profitability for the firm was also on account of diversification of courses.

“Profitability is an absolute focus area. On a consolidated business, we have enough scale now to keep our profitability going. And that is on account of our diversification of courses (from undergrad to doctorate) as well as the high margins that we make. In addition, the completion track record for our courses is 85%, and that leads to referrals (to get more students into the ecosystem),” he said.

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In the ongoing quarter of the current fiscal (FY’22), Screwvala added that upGrad is in line to clock revenues of almost Rs 600 crore (or roughly $80 million), taking its annual revenue run rate to almost Rs 2250 crore (or $300 million). Further, 80% of the firm’s revenues continue to come from the India market.

“Quarterly revenue rate for upGrad now is $80 million or roughly Rs 600 crore which translates to an annual run rate of Rs 2250 crore or $300 million. The first nine months of this year were in investment mode on various new initiatives from study abroad to short courses, so the total loss for the firm would be around Rs 150 crore, with the fourth quarter being profitable. Overall upGrad has a positive working capital as all fees are received upfront for the full year,” added Screwvala.

upGrad’s profitability comes at a time when the company is fortifying plans to list in the public exchanges in the next 18-24 months, ET had reported on December 13.

The company is also in talks to raise additional funding, which will see existing investors pouring funds, at a valuation of almost $3 billion. Screwvala declined to comment on the company’s fundraising plans.

In August, last year, upGrad had closed a $185 million funding round from Temasek Holdings Ltd, International Finance Corp (IFC), and IIFL Group, at a valuation of $1.2 billion, propelling it to the list of unicorns, or privately held companies with a valuation of $1 billion or more.

At present, upGrad founders including Mayank Kumar and Phalgun Kompalli hold more than 70% stake in the startup.

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