As the Company Looks to Raise $50–60 Million, Upgrad MD Mayank Kumar Steps Down

According to a media report, managing director and cofounder of the edtech unicorn Upgrad, Mayank Kumar, has left his position as an executive to launch a new business. Last month, he began reducing his operational responsibilities at the Mumbai-based company. This step was taken to raise funds for his new venture, which focuses on sending talented Indian workers abroad, particularly for the healthcare industry.

Ronnie Screwvala, the company's founder and chairman, has been involved in the business more since Kumar left. According to a media report, Temasek-backed Upgrad is also nearing the completion of securing $50–60 million in capital from current investors at a flat valuation of $2.25 billion. Kumar owns 8% of the company, while Screwvala owns 44%. Despite Kumar's exit from the company, the shareholding pattern remains unchanged.

Upgrad’s IPO Plans

Screwvala's return coincides with the edtech company's intentions to go public in India, where the serial entrepreneur's increased involvement in the company could be advantageous to public market investors.

Mayank has been discussing the notion of raising funds with investors and making pitches to them. He will then register the company, and, as the media report further informs, he has not had operational involvement since October. 

India’s Edtech Scenario

The edtech industry is currently undergoing a period of significant transformation. Recent turmoil at Byju's and a broad restructuring in the higher education sector are significant factors. Upgrad's revenue in FY24 increased by 25.54% to INR 1,715 crore from INR 1,366 crore the year before. Although Upgrad has expanded at a specific rate, a faster growth rate was the goal.

As a result, Screwvala will now have more influence over important operational decisions. He will now focus more on the IPO plans that are imminent and businesses attempting to capitalise on the present surge in demand for new listings.

Restricting of Upgrad

The restructure at Upgrad was confirmed by Screwvala and Kumar. In October 2023, Ronnie and Kumar had a conversation about Mayank's lack of involvement in the company's daily operations and how he could play a more active role. Thus, since the beginning of this year, the two have switched positions at Upgrad, according to Kumar. He also informed further that he is still an 8% stakeholder and that he is not "going anywhere."

"Moving positions around during a company's life cycle is exciting, and that is exactly what we have done. Since it has always been our goal to outlast everyone else and build for the long term, none of us are going anywhere. Since this field of skill development, workforce development, and lifelong learning is only getting started, Mayank and I have also assembled an extremely strong team of colleagues around us," stated Screwvala.

Ronnie Screwvala’s Journey from UTV to upGrad

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