UpGrad, an education technology startup To Acquire US-based Edtech firm Udacity
By siliconindia | Monday, 03 July 2023, 10:01 IST
Edtech major upGrad is reportedly in discussions to acquire US-based edtech firm Udacity, which has been up for sale for a few months, and is contemplating a majority stake sale through an equity swap. According to reports, Udacity is now potentially valued at over USD 100 million and recent discussions indicate a valuation range of USD 100 million to USD 120 million.
Even in the case of an equity swap, Udacity's falling client retention rate and about USD 100 million in annual revenue raise questions about the company's long-term viability and valuation, according to the reports.
Udacity, a US-based company, became a member of the unicorn club in 2015 after securing a USD 105 million Series D financing. According to Tracxn, it has raised USD 238 million in capital altogether over five rounds. Udacity is now open to selling, which would result in a considerable decrease in its valuation compared to its peak as a unicorn, the report said, but this is because to a large contraction in operations.
Founded in 2012 by David Stavans, Sebastian Thrun, and Mike Sokolsky, Udacity is headquartered in Mountain View, California, and maintains an Indian base in Bengaluru. It is a global online training platform that offers industry-relevant skills through programmes covering disciplines such as AI, machine learning, data science, cloud computing, cybersecurity, digital marketing, and product management.
UpGrad said earlier this month that it intended to construct a medical institute in the Republic of Vanuatu as part of its expansion into the Pacific area. With the help of its current shareholders and founders, upGrad funded Rs 300 crore in March through an internal rights issue, demonstrating its dedication to both organic and inorganic expansion across numerous formal education verticals. In India, the United States, the United Kingdom, the Middle East, Singapore, and Vietnam, upGrad has 31 offices. According to Tracxn, the company has made 16 acquisitions.
Read More News :