UpGrad’s Growth Story: From Startup Dream to EdTech Powerhouse

by Arti · Published 8 November 2025 · Updated 9 November 2025

upGrad started with a simple belief that quality education should reach everyone, everywhere. Today, it stands as one of India’s most influential edtech companies, reshaping how people learn, upskill, and prepare for jobs. It does not operate only as an online course platform. It functions as a full-stack learning ecosystem that covers higher education, skill-based certifications, bootcamps, career support, and enterprise training. Over the years, it has grown its revenue, reduced losses, and entered profitability in FY25. It has also expanded globally, invested in artificial intelligence, acquired strategic companies, and built a learner base of millions. This growth story reflects ambition, innovation, and resilience.

2. Founding and Early Vision

Ronnie Screwvala, Mayank Kumar, Phalgun Kompalli, and Ravijot Chugh founded upGrad in 2015. Ronnie Screwvala brought his experience from the media giant UTV. He believed technology could transform higher education and make it more accessible. The founders launched upGrad with a mission to create impactful, industry-relevant learning. They focused on working professionals who wanted to upskill without quitting their jobs.

In its early years, upGrad partnered with premier universities and industry experts. It launched programmes in data science, digital marketing, product management, and entrepreneurship. The company did not rely on pre-recorded videos alone. It combined live sessions, mentorship, assignments, and real-world projects. This approach created strong learner outcomes and high course completion rates.

3. Business Model and Revenue Streams

upGrad built a multi-layered business model to serve individuals, professionals, and enterprises. Its revenue streams include:

Degree Programmes: upGrad collaborates with universities in India and abroad to offer online bachelor’s and master’s degrees in data science, management, computer science, finance, and law.
Certification Courses and Bootcamps: These short-term, job-focused programmes attract working professionals and students who want fast career outcomes.
Study Abroad Services: upGrad supports learners who want to apply to international universities by offering admission assistance, counselling, visa guidance, housing support, and pre-departure training.
Enterprise Training: The company trains employees for corporates in emerging technologies like artificial intelligence, cloud computing, cybersecurity, leadership, and digital transformation.
Test Preparation and Job Placement: It also earns revenue from competitive exam prep, interview coaching, placement guidance, and career counselling.

This diversified structure helps upGrad reduce dependency on a single product and increases its appeal across learner segments.

4. Funding Journey and Valuation Growth

upGrad originally started with founder capital. As the company scaled, investors showed interest. In 2021, upGrad became a unicorn after securing funding that pushed its valuation above one billion dollars. Temasek, IFC, IIFL, and other global investors supported its growth.

It raised funds to build technology, expand its course catalog, enter new geographies, and acquire companies. By 2024, upGrad’s valuation reached nearly $2.5 billion. The founders continued to hold a majority stake, giving the company strategic flexibility and long-term control.

5. Financial Growth: FY23 to FY25

upGrad’s financial journey reflects a shift from aggressive expansion to sustainable growth and profitability.

In FY23, upGrad reported gross revenue of around ₹1,194 crore. It nearly doubled revenue from the previous year. The company, however, recorded significant losses due to high marketing costs and acquisitions.
In FY24, revenue rose to ₹1,876 crore. The company achieved 30% year-on-year growth. Its total income under Ind-AS accounting stood at ₹1,547 crore. It also carried forward ₹507 crore in collected but unrecognised revenue, indicating strong future earnings.
upGrad cut its EBITDA losses by nearly 50% in FY24. EBITDA loss stood at ₹202 crore excluding one-time expenses, compared to ₹558 crore in FY23. With one-time expenses, the loss stood at ₹285 crore.
The company also reduced its net loss (PAT) from ₹1,142 crore in FY23 to ₹560 crore in FY24. Controlled spending on marketing and delivery costs helped improve margins.
The company reported an enterprise client base increase of nearly 50% in FY24. The paid learner base crossed 10 million globally.

The most significant milestone arrived in FY25. upGrad announced EBITDA profitability. It recorded gross revenue of approximately ₹1,943 crore and total income of around ₹1,650 crore. It also carried forward ₹556 crore in advance revenue. This marked its entry into financial stability after years of heavy investment.

6. Strategic Acquisitions and Partnerships

upGrad fuelled its growth through key acquisitions. Each acquisition strengthened a different vertical.

Acquirement of Harappa Education expanded its presence in the soft skills and leadership development segment. Harappa brought in strong content and corporate relationships.
Acquisition of KnowledgeHut gave upGrad an edge in short-term technology bootcamps and agile tech training.
Collaboration with global universities helped upGrad offer online degrees in collaboration with institutions from Australia, the United States, and Europe.
Corporate partnerships with companies like Amazon Web Services, Microsoft, and IBM helped upGrad provide industry-backed certifications.
In 2025, reports emerged that upGrad entered talks to acquire Unacademy at a valuation of $300–320 million. This deal, if it goes through, will give upGrad access to test preparation and K-12 learner segments.

These acquisitions and partnerships helped upGrad build a full-stack learning ecosystem across multiple age and skill groups.

7. Technology and AI-Driven Transformation

upGrad did not limit itself to course delivery. It consistently expanded its technology capabilities. It invested nearly ₹100 crore to develop AI-powered tools, content systems, and personalised learning models.

The company built AI tutors, automated feedback systems, and predictive analytics to track student performance. It also introduced generative AI-based learning assistance, content creation, and doubt-solving tools. These AI models reduced faculty workload and improved student engagement.

upGrad also launched a dedicated AI incubator. This initiative supports startups that build educational AI solutions. The incubator encourages innovation and strengthens upGrad’s presence in the AI learning ecosystem.

AI-driven job matching systems now match learners with relevant job opportunities based on skills, assessments, and employer requirements. The company integrated resume builders, mock interviews, and job application support powered by AI.

8. Global Expansion Journey

upGrad expanded beyond India by entering Southeast Asia, the Middle East, Europe, and North America. It opened offices in Singapore, Dubai, Vietnam, Indonesia, and Australia.

Initially, upGrad targeted learners who wanted international degrees but could not travel due to visa restrictions or high costs. It built partnerships with universities in the United Kingdom, Australia, and the United States.

By 2025, upGrad noticed falling student interest in U.S. and U.K. physical campuses due to visa challenges, cost of living, and global uncertainties. It shifted its expansion strategy. The company focused more on Asia and the Middle East. It expanded into Vietnam, Bangladesh, Nepal, Sri Lanka, Dubai, and Malaysia with local university collaborations and micro-campuses.

This strategy helped upGrad reach cost-sensitive students and tap into regions with strong demand for affordable quality education.

9. Leadership and Organisational Strategy

upGrad’s leadership team played a critical role in its growth. Ronnie Screwvala provided vision and entrepreneurial direction. Mayank Kumar handled core business strategy and institutional partnerships. Phalgun Kompalli focused on growth, product development, and business operations.

In 2025, upGrad appointed Ferzad Palia, a former executive from JioStar, as CEO of its direct-to-consumer business. This move signalled a stronger focus on B2C growth and brand strengthening. The leadership continued to maintain a balance between profitability and innovation.

The company fostered a culture of continuous improvement, ownership, and learner success. It focused on scaling sustainably rather than spending heavily on advertising like many competitors.

10. Challenges and Competitive Landscape

upGrad operates in a highly competitive edtech environment. It faces competition from Byju’s, Coursera, Simplilearn, Udacity, Emeritus, and Great Learning.

Major challenges include:

High customer acquisition costs: Digital marketing and lead generation require heavy investment.
Need for strong placement outcomes: Learners demand tangible career outcomes after investing time and money.
Regulatory changes: Education regulations evolve often and can impact online degree programmes.
Economic pressure: Global financial uncertainty can reduce discretionary spending on education.
Competition from traditional universities: Many universities now offer online courses directly, reducing dependency on platforms.

Despite these challenges, upGrad maintained financial discipline and improved profitability. It relied on high-quality content, partnerships, and outcome-based learning instead of aggressive discounting.

11. Future Outlook

upGrad’s future looks promising as it enters a new phase of profitable growth. The company plans to strengthen these areas:

AI and automation: The company will continue to integrate AI across learning, career services, content development, and enterprise training.
Short-term, outcome-driven programmes: Demand for bootcamps and certification courses continues to rise. upGrad aims to grow this segment by 40% by FY26.
Enterprise and workforce skilling: Companies want to reskill employees in AI, cloud, and emerging technologies. upGrad plans to scale its B2B training vertical and sign more Fortune 500 clients.
Hybrid learning models: The company may introduce offline learning centres and micro-campuses in India and Asia. These centres will combine physical mentorship with digital content.
Study abroad and international degree services: upGrad will strengthen its presence in the global education advisory space.
Potential IPO: With EBITDA profitability and growing revenue, upGrad may consider an initial public offering in the near future.

12. Conclusion

upGrad’s journey reflects ambition, strategy, and innovation. It started as a small startup that wanted to upskill working professionals. Today, it stands as a global leader in online education and workforce development. It built a strong business model, expanded internationally, acquired complementary businesses, and integrated AI technology. It increased revenue significantly from FY23 to FY25 and finally entered profitability.

The company continues to innovate in AI-driven learning and job placement. It focuses on real outcomes instead of only content delivery. It eyes global expansion in Asia and the Middle East while building a strong domestic presence. Challenges exist, but upGrad’s leadership remains confident and driven.

upGrad’s growth story proves that when vision meets execution, industries transform, and millions benefit. It has reshaped learning for the digital age and continues to shape the future of education across the world.

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