Mumbai-based ed tech upGrad has acquired test preparation firm The Gate Academy for an undisclosed amount, Business Insider India has reported.
The Gate Academy, headquartered in Bengaluru, will operate as a subsidiary of upGrad but retain its brand name – and the company’s founder and chief executive Ritesh Raushan will continue to lead it.
upGrad stated it will invest 100 crore rupees (£1.35 million) into The Gate Academy, as well as “developing over 20,000 hours of content in multiple languages to provide access to at least one million test-takers annually”.
In a joint statement, upGrad founders Ronnie Screwvala and Mayank Kumar, said: “TGA provides upGrad a non-linear growth opportunity in new segment entry and deeper penetration in the semi-urban and rural markets. With every strategic move, we are ensuring that upGrad leads from the front as India emerges as the teaching capital of the world.”
Raushan added: “We all are very excited to join hands with upGrad team. We aim to employ our extensive experience in both physical and online modes of teaching to create a world-class product that will bring fundamental changes in the way technology enables learning in the future.”
upGrad stated that the acquisition is the first of many it is planning in the higher education sector. It added that it has raised a 50 crore rupee debt fund from IIFL Asset Management.
Date published: 27 November 2020