upGrad, the higher education platform announced that it has acquired online learning institution Harappa Education for Rs 300 crore or $38 million in a cash and stock deal.
This will be upGrad’s tenth purchase in the previous 2.5 years, or since January 2020, under the direction of Ronnie Screwvala.
The deal between upGrad and the shareholders of Harappa, which also included Bodhi Tree Systems and co-founders Pramath Raj Sinha and Shreyasi Singh, has been finalised. James Murdoch, the founder and CEO of Lupa Systems, and Uday Shankar, the former president of The Walt Disney Company Asia Pacific, have just established a platform called Bodhi Tree Systems.
In January 2020, Bodhi Tree Systems (through Lupa Systems) made their first investment in India with Harappa, where they later acquired a majority share. The Allen Career Institute in Kota received a $600 million investment from the joint venture as well. In January, Entrackr was the first to report on the development.
With our time-tested philosophy, flagship programmes, and rich collaborations, Harappa and upGrad will underpin our purpose and conviction to create a truly holistic learning ecosystem for lifelong learners in India and worldwide, said the co-founders of Harappa in a joint statement.
The Morning Context covered the development in April.
Harappa Education, based in New Delhi, provides self-paced courses to address the growing issue of poor employability, subpar leadership, and an underqualified workforce. The four-year-old startup claims that it has 100 active clients who are mid- and large-sized businesses.
Harappa Education has not yet released its financial results for FY22, but according to annual financial records submitted to RoC, its operating revenue increased 12X to Rs 4.41 crore in FY21 from Rs 35 lakh in FY20. From Rs 6.37 crore in FY20 to Rs 36.75 crore in FY21, its losses increased by 5.8X.
In August of last year, upGrad, with a $1.2 billion value, joined the unicorn club. It reportedly collected $225 million in a fresh round last month at a $2.25 billion value. The Mumbai-based company has more than 300 university partners and a learner base of over 3 million spread across more than 100 countries. Since its launch, upGrad has acquired 13 firms.