Edtech Unicorn upGrad acquires Harappa Education for $38 Mn

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Edtech unicorn upGrad has acquired Harappa Education for $38 million (INR 300 million) in a combination of cash and stock swap. As part of the deal, Harappa’s founders – Pramath Raj Sinha and Shreyasi Singh along with its stakeholders will join the upGrad cap table. 

UpGrad’s spokesperson said that the acquisition will help upGrad strengthen its capabilities in the enterprise technology segment. As a result, Harappa Education will also continue to operate independently.

This is the second acquisition in a row that upGrad made in July. Previously upGrad’s subsidiary upGrad Rekrut acquired recruitment and staffing company WOLVES India.

Founded in 2018 by Sinha and Singh, the New Delhi-based B2B ed-tech startup Harappa offers self-paced online courses for working professionals across organizations. It offers courses in several areas such as personality development, career growth, emotional intelligence and productivity among others. Harappa currently has a clientele of 100 medium and large organizations. According to the company, it plans to reach INR 75 crore in revenue this year.

Pramath Raj Sinha and Shreyasi Singh, Founders of Harappa Education, said, “We are delighted to expand the enormous potential of Ronnie and Mayank. As a combined force, Harappa and upGrad will anchor our purpose and belief to create a truly healthy learning ecosystem for lifelong learners in India and abroad.”

Launched in 2015, the edtech unicorn upGrad has a user base of 3 million in over 100 countries. It also has a clientele of 1,000 companies that operate all over the world. Apart from India, it also has a presence in other countries including the UK, USA, Middle East, Singapore and Vietnam.

Ronnie Screwvala and Mayank Kumar, Founders of upGrad, said, “We see strong demand from our clients and with the arrival of Harappa we believe we will be able to grow exponentially within the segment as we leverage synergies. Pramath and Shreyasi come with a strong business heritage, which in turn supports our ambition to become a global leader in edtech.” 

In June, upGrad secured $225 million from US-based Lupa Systems LLC and Educational Testing Service (ETS). Other investors – Temasek Holdings, family offices of Lakshmi Mittal and Sunil Bharti Mittal – also participated in the round.

So far, the edtech unicorn has completed three acquisitions this year and 9 companies including WOLVES India since its inception, the startup shared.

In the Indian ed-tech space, upGrad faces competition from the likes of BYJU’S, Udemy, Unacademy and Vedantu.

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