UpGrad plans to upscale FY22 income to INR1,900 crore

by March 25, 2022 0 comments

upGrad, a short-duration technology skill upgrade provider, is expecting to reach revenues of Rs 1,900 crore by the end of the financial year 2021-22. The company is upbeat and confident of reaching the target, as there has been a rise in demand for short-term courses with the global workforce aiming to upskill and improve its competency. upGrad has a customer base across the globe, with the majority of them coming from the US and Southeast Asia, followed by India.

Chairperson and co-founder of upGrad Ronnie Screwvala said in a media interview that the company has hit overall profitability in the last quarter of FY 2021-22. In its regulatory filing, upGrad reported consolidated revenue of Rs 302.26 crore and a net loss of Rs 211 crore. In the fourth quarter of the current FY22, UpGrad expects to reduce its loss to about Rs 150 crore.

The company says that 85% of its students complete their courses, which leads to better word-of-mouth publicity. The company has acquired Impartus Innovations, KnowledgeHut, Talentedge, Work Better Training as well as Global Study Partners this financial year. Mr. Screwvala said that on a consolidated business, the company has enough scale now to keep profitability going. It is because of diversification of courses (from undergrad to doctorate) and high margins, he added.

Mayank Kumar, co-founder, Managing Director, upGrad, said that the company has a 65-90% gross margin business and therefore is Earnings Before Interest, Tax and Amortisation (EBITDA) positive on all vertical levels for its mature businesses. However, as upGrad plans to invest in growth and geographical expansion across Australia, Africa, Vietnam, Indonesia, and then the Middle East, it will “continue to be in investment mode for another two years” at a consolidated company level, he added.

In FY22 and FY23, the company’s investments will include ‘non-linear growth in the country”, and international expansion, he said. At present, upGrad founders together with Mayank Kumar and Phalgun Kompalli hold over 70% stake within the startup.

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