UpGrad, a leading edtech, is apparently in talks to purchase Udacity, a US-based edtech company that has been on the market for a few months and is thinking about selling a majority stake through an equity swap. According to reports, Udacity may now be worth more than USD 100 million, and recent negotiations suggest a valuation range of USD 100 million to USD 120 million.
According to the sources, even in the event of an equity swap, Udacity’s declining client retention rate and approximately USD $100 million in yearly revenue raise concerns about the company’s long-term health and valuation.
In 2015, Udacity, a US-based business, joined the unicorn club after obtaining a USD 105 million in Series D financing. Tracxn claims that throughout the course of five rounds, a total of USD 238 million in capital has been raised. The report stated that Udacity is now open to selling, which would result in a significant drop in valuation from when it peaked as a unicorn, but this is due to a significant reduction in operations.
Udacity, which was established in 2012 by David Stavans, Sebastian Thrun, and Mike Sokolsky, has its primary office in Mountain View, California, and a presence in Bengaluru, India. It is a global online training platform that provides programmes in subjects including artificial intelligence, machine learning, data science, cloud computing, cybersecurity, and digital marketing. These programmes give skills that are applicable to the industry.
As part of its development into the Pacific region, UpGrad stated earlier this month that it planned to build a medical institute in the Republic of Vanuatu. UpGrad raised Rs 300 crore through an internal rights issue in March with the assistance of its present shareholders and founders, indicating its commitment to both organic and inorganic expansion across several formal education verticals. UpGrad has 31 offices spread over 31 countries, including Vietnam, Singapore, the Middle East, the United States, and the United Kingdom. The business has reportedly made 16 acquisitions.
