Edtech major upGrad has announced impressive financial results for the fiscal year ending March 2024, reporting a gross revenue of ₹1,876 crore. This is a significant milestone for the Mumbai-based learning platform that specializes in online and hybrid skilling programs. In addition to its revenue growth, upGrad has successfully reduced its EBITDA losses by 50%, showing commitment to financial health improvement while continuing to expand its operations.
PC: Business Standard
Financial Performance Summary
For FY24, the total income of upGrad, net of adjustments under Ind-AS, stood at ₹1,547 crore. The company reported that it had carried forward ₹507 crore in unrecognized but collected advance revenue to future years, which reflects strong demand for its offerings. The Ind-AS EBITDA loss, excluding one-time costs, was reported at ₹202 crore, a marked improvement from the ₹558 crore loss recorded in the previous fiscal year.
Including one-time costs, upGrad’s EBITDA losses narrowed to ₹285 crore, showing a consistent effort to manage expenses while investing in growth. The company managed to reduce its net losses by 50.6% to ₹560 crore, as against ₹1,142 crore in FY23. This loss figure includes ₹243 crore attributable to non-cash items, so it is essential to understand cash flow while evaluating the company’s financial performance.
Strategic Growth and Cost Management
upGrad has been able to deliver this growth with low double-digit growth in cost of employees, marketing, and delivery. It has focused on investing in technology and product development to better the learning experience for the user,” co-founder Mayank Kumar said. “I would term FY24 as a good consolidation year where upGrad integrated core business operations to drive scalable outcomes.”.
The company is positive about FY25, where stronger growth and profitability are expected. Zero net debt and a strong return on capital employed (ROCE) put upGrad in a good financial position to handle the competition in the edtech space.
Enrollment and Market Reach
The edtech platform saw a 50% increase in learner enrollments in its consumer segment, facilitating over 55,000 career transitions for its users. The most sought-after hiring domains include marketing, data, and technology, with significant placements occurring in major metropolitan areas such as Mumbai, New Delhi, Bengaluru, and Chennai. Notably, courses in artificial intelligence and technology contributed to 20% of the company’s total revenue.
The enterprise business of upGrad also witnessed strong growth with a nearly 50% increase in clientele as compared to the previous fiscal year. Partnerships with various industries, including GCCs, automobiles, ITes, BFSI, manufacturing, and other service sectors, have further strengthened upGrad’s market position.
Funding and Future Prospects
In October 2024, Temasek invested $60 million, which took the valuation of upGrad to $2.25 billion. So far, the firm has raised over $320 million in funding, and Temasek has turned out to be the largest external stakeholder holding 20.5% in the company. Ronnie Screwvala, who is one of the co-founders, remains the chairperson, holding 45% stake in the company along with his family.
As upGrad grows further, it faces competition from edtech players like Eruditus, which raised $150 million in a Series F funding round during the same month. Despite this competition, upGrad’s strategic focus on improving learning outcomes and expanding its market reach will enable the company to sustain success in the edtech sector.
In conclusion, the strength of upGrad’s financials and proactive cost management strategy clearly points to its commitment to becoming a leader in the online education space while driving meaningful career transitions for its learners.
