upGrad Begins IPO Preparations for $350–400 Million Listing Planned in 2027

According to multiple media sources, Temasek-backed upGrad has started early preparations for an IPO that might garner $350–400 million. The company is investigating inorganic expansion through possible mergers and acquisitions at the same time as the IPO push. As reported by media houses, upGrad is investigating a possible $300–400 million share-swap agreement with Unacademy and is already in negotiations to purchase a few assets of the struggling edtech company Byju's.

Following the post-pandemic collapse of the edtech industry, upGrad is focusing on cost control, international expansion, and consolidation as it attempts to rebuild its business in preparation for a planned 2027 IPO. The company is reportedly in exploratory talks with bankers about the IPO, according to a media report. It is anticipated that formal pitches will take place in the first quarter of the next year. It is anticipated that the planned IPO will mostly be a primary issue with a minor offer-for-sale component.

upGrad Scouting for Investment Banks

upGrad is anticipated to finalise a group of investment banks by February or March of next year, and its listing is most likely scheduled for after June 2027. Approximately 40% of upGrad's B2C revenue now comes from international markets, which it has been relying on more. West Asia and Southeast Asia, where there is a growing need for skill-building and artificial intelligence (AI)-led educational initiatives, have witnessed significant growth for the organisation.

Earlier this month, Mint revealed that upGrad intends to accelerate its global operations. Prioritising cost control and profitability in the lead-up to a possible listing, the company is also expanding its offline presence at home to engage early-career workers. upGrad was established in 2015 and uses an omni-channel business model that includes study abroad options, online courses, degree programmes in collaboration with Indian and international universities, and offline learning centres. It serves working professionals and students in both Indian and foreign markets. With a $60 million fundraising round last year, the company has raised about $329 million so far. IFC, EvolutionX, and 360 One are other investors.

IPO Race Heats Up in India’s Edtech Sector

UpGrad's IPO preparations coincide with the Indian edtech industry's cautious reopening of discussions for public listings following a protracted decline in investment and valuation. Several edtech companies, such as professional learning platform Imarticus, school-focused edtech company Lead, and B2B player Classplus, announced their ambitions for an initial public offering (IPO) within the next 12 to 18 months, according to reports from various media outlets in February.

That impetus has been increased by recent listings and public-market activities. The sector's interest in public listings has increased as a result of PhysicsWallah's IPO and actions taken by organisations like Crizac and Jaro Education.