upGrad Sets Up AI Incubator with ₹100 Cr Investment

Ayesha Agrawal

27 Feb 2025 — 2 min read

upGrad launches AI incubator 100 crore allocation

upGrad- a leading ed-tech giant with its headquarters located in Mumbai has officially announced the launch of 'UpGrad AI Incubator' which is an initiative specifically designed to support Indian AI startups in various niches including education, skill development, and workforce training.

As a part of this strategic initiative, upGrad has allocated INR 100 crore as seed funding and also provided Indian AI startups with the relevant resources and infrastructure to attain innovative and industry-focused solutions. In the upcoming months, upGrad plans to invest in a group of 5-6 AI startups through its incubator program with the collective aim of supporting innovative solutions enabling the transformation of the education sector. By taking a minority stake in these startups, upGrad will provide strategic investment and guidance to fuel their growth while allowing them to maintain their independence and operational flexibility.

Founder's statement on this strategic Move

Ronnie Screwvala, Co-founder and Chairperson of upGrad stated, " In today's rapidly changing digital presence, AI has become an essential skillset for individuals as well as businesses. With the upGrad AI Incubator, we aim to authorize India's talent pool to become a driving force for innovation and represent our nation at the forefront of global growth. By providing a platform for AI startups to innovate, experiment, and grow, we are committed to promoting a vibrant ecosystem that will accelerate India's growth to remarkable heights."

Promoting Indian Startups like ZuAI to Drive Innovation

The launch of upGrad's AI Incubator highlights the progression of its recent collaborations with industry leaders and government bodies, focused on promoting over a million learners with AI skills and establishing AI Centres of Excellence pan India. This mindful initiative underlines upGrad's dedication to driving growth and innovation in AI education in India.
As part of its first investment under the incubator, upGrad has invested in 'ZuAI', a Bengaluru-based startup that offers 24/7 AI-powered personal tutors for students. However, the financial terms of the deal remain undisclosed.

upGrad Partners with Maharashtra Government

A few days ago, the company signed an agreement with the Maharashtra government to establish AI excellence centers across the state, with an initial investment of INR 2,150 Crore.
In another significant partnership, Neeraj Gera, former COO of Dentsu, has joined the company as the India head for enterprise delivery, while Neha Prasad Mullick, a former Amazon executive, has been appointed as the vice president for enterprise sales in North America.

About upGrad

Founded in the year 2015 by Ronnie Screwvala, Ravijot Chugh, Mayank Kumar, and Phalgun Kompalli, upGrad is South Asia's largest Edtech company with the latest technology and pedagogy. With world-class facilities, the brand offers various programs that include skilling programs, certifications, diplomas, master’,s and executive doctorate programs from top Indian and global universities.
The company's vision is to empower career success for every member of the global workforce as their trusted lifelong learning partner.