Kumar said the company will go for an IPO once it reaches milestones such as achieving $750 million in revenue, maintaining an 80% gross margin, and sustaining a 50% net margin.
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“For us one criteria has been that if we have to list, then list at a scale where you potentially can be in the large-cap, because if you’re in the mid- to small-cap, then…somebody else will drive your fortune. That’s not something that we want to be like,” he said.
Kumar said the majority of Upgrad’s business — around 95% — occurs digitally, with its primary focus being in India. The firm intends to list on the Indian stock market when it’s ready to go public.
“We’re currently at a run rate of $400 million,” said Kumar at the ASU + GSV and Emeritus summit in Gurugram.
Upgrad posted a 96% increase in revenue to Rs 1,194 crore in the financial year ended March 2023. However, its losses widened 67% to Rs 1,142 crore during the year compared to Rs 684 crore a year earlier.
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On February 6, ET reported that Upgrad has allocated Rs 100 crore to open 100 offline ‘connect and counselling’ touch-points and learning centres to boost online growth.ET had also reported that the Ronnie Screwvala-led company was in advanced stages of acquiring US online education firm Udacity. People briefed on the matter had said the company was also talking to investors to raise up to $100 million, of which about 80% would be used for financing the deal.
Founded in 2015, Upgrad offers a variety of online and hybrid degree programmes, pathway and study-abroad programmes, certification and bootcamps, diploma, master’s and executive doctorate programmes for working professionals.
The company has enrolled over 10 million learners from over 70 countries, and has a network of more than 300 direct global university partners. It has raised $365 million in total.
