Online higher education company, upGrad has reportedly entered in an exclusive contract to acquire rival firm Talentedge, in a deal worth Rs 350-400 crore (~$46-$53 million).
As per the agreement, upGrad will be acquiring Arrina Education Services, the parent company of Talentedge Education Ventures, marking it as one of the largest consolidations in the higher education space in India.
Ronnie Screwvala, Co-founder and Chairperson, upGrad, said that the company wishes to extend the gap between them and the next player by four times before branching out further in the higher education space.
Mr. Screwvala added that upGrad has positioned itself as the industry leader by being the most integrated player in higher education while serving learners and working professionals of ages 18-50 years across Asia.
Talking about the acquisition, Mr. Screwvala mentioned that in an industry where not many can survive, Talentedge was able to build a strong business in the last ten years. upGrad is pleased to welcome them in establishing one of the largest edtech companies globally.
While the acquisition cost for Talentedge has not yet been disclosed, Mr. Screwvala has confirmed that the company will be generating a revenue of Rs. 130 crores ($17 million) for the current financial year and will be doubling the amount in the next.
Sources allege that the transaction value will be around Rs. 350 to 400 crores (~$46-53 million).
Talentedge’s Chief Executive, Aditya Malik has stated the company will continue working, as it did before the acquisition, with its partner universities and institutes in delivering quality education to learners for various degrees and certificate programs.
With Talentedge, upGrad added another acquisition under its belt this year, having acquired KnowledgeHut in August and Impartus in May, as well as the Australia-based Global Study Partners (GSP) in November.
upGrad, co-founded in 2015 by Mayank Kumar, Phalgun Kompalli, and Ronnie Screwvala, had recently hit a valuation of $1.2 billion after it closed a $185 million funding round in August.