EvolutionX Backs upGrad with $34 Million Funding Boost

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June 29, 2024

India’s largest EdTech unicorn, upGrad, has secured $34 million in debt funding from EvolutionX, a prominent investment firm known for supporting growth-stage businesses across Asia. This strategic move aims to expand upGrad’s offerings and strengthen its position in the competitive EdTech sector.

Founded in 2015 by Ronnie Screwvala, Mayank Kumar, and Phalgun Kompalli, upGrad has emerged as a leading online education provider. It offers higher education and upskilling programs tailored for working professionals and students seeking to advance their careers. The recent $34 million infusion from EvolutionX is expected to accelerate upGrad’s growth strategy, enabling the company to scale operations, develop new products, and explore new markets.

Opting for debt funding instead of equity funding indicates upGrad’s intention to retain operational control and avoid ownership dilution. This approach is feasible for firms with a clear earnings trajectory and a robust revenue model—qualities upGrad has consistently demonstrated.

EvolutionX, with deep roots in major financial institutions and a history of investing in high-growth technology companies across Asia, has shown confidence in EdTech and India’s demand for accessible, quality education and professional development. Their investment portfolio is diverse, and their decision to back upGrad validates the company’s business model and prospects.

The Indian EdTech market has grown rapidly, especially during the pandemic, which shifted educational institutions and learners to online platforms. upGrad has capitalised on this trend by partnering with leading universities worldwide to offer a wide range of courses in fields like data science, technology, management, and law, meeting the diverse needs of the contemporary workforce.

In a competitive landscape featuring players like Byju’s, Unacademy, and Vedantu, upGrad has distinguished itself through quality content, strong industry partnerships, and a robust learning platform. The significant funding from EvolutionX underscores investors’ confidence in upGrad’s growth potential and the sustainability of its business model.

The funds will enhance tech infrastructure, expand course offerings, and optimise customer acquisition strategies. Additionally, upGrad aims to deepen its engagement with its existing student base by providing better support services and personalised learning experiences.

UpGrad is also considering expanding into international markets. The funds from EvolutionX could facilitate strategic acquisitions and partnerships outside India, aligning with upGrad’s vision of becoming a global leader in EdTech.

Also read: upGrad Collaborates with PwC India to launch Financial Modelling and Analysis course

This $34 million debt funding comes at a crucial time for upGrad as it aims to scale in a post-pandemic world of education. With a focus on expanding operations and strengthening its pedagogical framework, upGrad is well-positioned to leverage this investment for long-term growth, making a lasting impact on the global EdTech industry.

The partnership with EvolutionX offers financial support and strategic insights to propel upGrad to new heights in its global mission to democratise education and professional development.

AICTE Unveils Financial Assistance Grant for Conference Hosting Institutes

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Kapil Suri

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June 29, 2024

The All India Council for Technical Education (AICTE) has launched a new initiative, the Grant for Organising Conference (GOC) scheme, to support AICTE-approved institutions hosting conferences across various disciplines. This scheme aims to enhance knowledge exchange and networking opportunities within the academic community.

Professor TG Sitharam, AICTE Chairman, highlighted the scheme’s goal of uniting academicians and experts from both national and international spheres to share their insights, experiences, and research outcomes. “This scheme will enable academia to disseminate and exchange knowledge with industry and other knowledge domains,” Professor Sitharam stated. He also underscored the importance of networking skills for students in technical and management fields.

Also read: AICTE Introduces New Guidelines to Enhance Industry-Academia Collaboration

The GOC scheme is structured into two categories:

Category A: Focused on conferences based on predefined themes announced by AICTE. Institutions can receive financial support for one-third of the conference expenditure, with a cap of INR 3 lakh.
Category B: Targeted at conferences proposed by institutions in emerging areas, core engineering, technical disciplines, management, hotel management, and various interdisciplinary fields. Financial assistance under this category is also one-third of the total expenditure, up to a maximum of INR 2 lakh. Additionally, Professor Sitharam announced the inclusion of BBA, BCA, and BMS colleges under Category B.

This initiative by AICTE is a significant step towards fostering academic and industry collaboration, promoting the sharing of innovative research, and advancing knowledge in technical and management domains. By offering financial support, AICTE aims to facilitate the organisation of conferences that can drive progress and innovation across various fields.

CBSE Revolutionizes Learning with Advanced Video Recording Studio

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Kapil Suri

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June 28, 2024

The Central Board of Secondary Education (CBSE) has inaugurated a state-of-the-art video recording studio, marking a significant leap towards enhancing digital education. This cutting-edge facility enriches the learning experience for teachers, students, and parents worldwide.

The inauguration ceremony held at the Centre of Excellence in Delhi (East), was graced by prominent figures, including Rahul Singh, IAS, Chairman of CBSE; Himanshu Gupta, IAS, Secretary of CBSE; and Dr. Ram Shankar, Director (Training). Heads of various departments within the board were also present to witness this landmark event.

Cutting-Edge Technology

The newly launched studio is outfitted with the latest technology to ensure the production of high-quality educational content. Key features include high-definition cameras, advanced audio systems, green screens, and professional lighting setups. These state-of-the-art facilities will enable the creation of superior educational videos to be broadcast on the PM eVidya CBSE DTH Channel and other CBSE channels and portals.

This initiative is part of CBSE’s ongoing commitment to advancing digital education. The new studio will facilitate the production of diverse educational materials, making learning more accessible and engaging for students. By leveraging modern technology, CBSE aims to provide valuable resources supporting teaching and learning processes.

Also read: CBSE announces new exam format for classes 11 and 12

With this new facility, the board is well-positioned to deliver high-quality educational content to a broader audience, significantly enhancing the overall learning experience.

Education Minister Unveils Biannual Board Exam Plan for Class 10 and 12 from 2025-26

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Kapil Suri

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June 27, 2024

Union Education Minister Dharmendra Pradhan has announced that Class 10 and 12 students can appear for board examinations twice a year starting from the 2025-26 academic session. This decision aims to alleviate academic stress among students.

The initiative aligns with the National Education Policy (NEP) 2020, which advocates for biannual board exams to provide students with multiple opportunities to excel academically. The New Curriculum Framework (NCF), introduced by the Ministry of Education in August last year, specifies that board examinations will be conducted at least twice annually, allowing students to improve their performance and retain their best scores.

During an event in Chhattisgarh, Pradhan engaged with students and asked for their feedback on the new policy. He encouraged them to take advantage of both exam sessions and keep their highest scores. “Prime Minister Narendra Modi ji’s vision through the NEP is to keep students stress-free, enrich them with quality education, maintain their cultural connections, and prepare them for the future. This is the formula for making India a developed country by 2047,” Pradhan stated.

ALSO READ: UGC Permits Biannual Student Admissions for Colleges Starting 2024-25

It is important to note that the new biannual board exam system for Classes 10 and 12 is optional and not mandatory.

During his visit to Chhattisgarh, the Union Minister launched the PM SHRI (Prime Minister Schools for Rising India) scheme. In the first phase, 211 schools in the state, including 193 elementary and 18 secondary schools, will be upgraded using a ‘hub and spoke’ model, with each school receiving ₹2 crore for improvements. Under this model, a central mentor institution (the ‘hub’) will guide and support its associated schools (the ‘spokes’).

Chhattisgarh’s School and Higher Education Minister Brijmohan Agrawal has requested that more secondary and higher secondary schools be included in the scheme’s next phase, which Pradhan has acknowledged.

C-DAC and AICTE Ink MoU for HPC Talent Development

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Kapil Suri

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June 26, 2024

The Centre for Development of Advanced Computing (C-DAC) and the All India Council for Technical Education (AICTE) have formalized a Memorandum of Agreement (MoA) to establish an ecosystem dedicated to human resource development in high-performance computing (HPC) and related fields, as announced in a press release by the Press Information Bureau (PIB).

This collaboration aims to foster sustainable growth in HPC and its allied technologies through comprehensive training programs designed to enhance the instructional capabilities of master trainers in these domains. Additionally, C-DAC and AICTE will jointly develop quality improvement programs for educators from non-computer science disciplines, broadening their expertise in HPC and associated technologies.

To extend the reach of these educational initiatives, courses will be offered on the Ministry of Education’s SWAYAM platform, ensuring accessibility to students nationwide. Furthermore, C-DAC will provide its developed HPC learning platforms to selected institutes, enhancing the practical learning experience.

Also read: Ajman University inks Mou with Cairo University to enhance media production education

At the MoA signing ceremony, Prof. T. G. Sitharam, Chairman of AICTE, remarked, “With the signing of this MoA between AICTE and C-DAC, we are taking a significant step towards creating a robust ecosystem for High-Performance Computing education in India.”

This initiative aligns with the National Supercomputing Mission (NSM), a flagship program of the Government of India that aims to build capacity and capability in HPC. Through this strategic partnership, C-DAC and AICTE are poised to advance HPC education and drive technological innovation across the country.

Prosus Writes Off 9.6% Stake In Byju’s Amid Significant Valuation Decline

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Kapil Suri

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June 26, 2024

Investment firm Prosus has announced the write-off of its 9.6% stake in the edtech company Byju, attributing this decision to a significant decline in value. According to the Naspers-owned firm, the decreased value for equity investors in Byju necessitated this financial move. This mirrors the broader sentiment among Byju’s financial backers, who now assess the company’s value at nearly zero.

In a recent stock exchange filing in the Netherlands, Prosus disclosed, “A fair value loss of $493 million was recognised in other comprehensive income in the current year.”

Prosus has invested approximately $500 million in Byju’s over the years. Its portfolio includes prominent Indian startups like Swiggy, Meesho, and Eruditus.

Over the past few years, Byju has faced a series of valuation downgrades from its early backers, including Prosus. Notably, the financial firm HSBC recently estimated that Prosus’s nearly 10% stake in Byju holds zero value.

Also read: Edu-tech platform Udemy raises Rs 371 cr in funding

This development follows Byju’s recent $200 million rights issue, which valued the company at $225 million—a stark 99% discount from its peak valuation of $22 billion. Consequently, Byju Raveendran, the company’s founder, has seen his net worth plummet to zero, as per the Forbes Billionaire Index 2024. Previously, his net worth stood at Rs 17,545 crore (approximately $2.1 billion).

Byju’s financial troubles have also led to significant departures at both executive and board levels over the past year. In October 2023, CFO Ajay Goel resigned, followed by India CEO Arjun Mohoan in April this year. Last month, advisory council members Rajnish Kumar and T V Mohandas Pai also stepped down.

Currently, Byju Raveendran manages the company’s day-to-day operations. He consolidates its business into three core divisions: The Learning App, Online Classes and Tuition Centres, and Test-Prep.

This write-off is not an isolated incident for Prosus. Last year, the firm marked down its $38 million investment in the buy now, pay later startup ZestMoney, which DMI Group later acquired in a fire sale.

Setbacks and ongoing legal and regulatory challenges have left Byju with a bleak outlook. For Raveendran and his team, the path to recovery appears uncertain and fraught with difficulties.

MAHE, Roche Diagnostics India Unveil New Centre Of Excellence

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Kapil Suri

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June 25, 2024

Manipal Academy of Higher Education (MAHE) and Roche Diagnostics India Pvt Ltd. have entered into a landmark partnership by signing a Memorandum of Understanding (MoU) to establish a Centre of Excellence (CoE). This initiative aims to bolster skill development and foster innovation in the diagnostics sector. Dr Giridhar Kini, Registrar of MAHE, and Dr Rishubh Gupta, Managing Director—India & Neighbouring Markets, Roche Diagnostics India, formalised the MoU.

This strategic collaboration represents a significant milestone in leveraging the synergies of academia and industry to advance healthcare diagnostics. The primary focus of the CoE will be developing state-of-the-art diagnostic tools and training healthcare professionals in the latest technologies. This facility will serve as a hub for cutting-edge research, interactive workshops, and comprehensive knowledge sharing, designed to cultivate a culture of innovation and excellence in diagnostics.

Lt. Gen. (Dr.) M.D. Venkatesh, (VSM) Vice Chancellor of MAHE, expressed his enthusiasm for the partnership, stating, “This collaboration will equip clinicians with advanced diagnostic technologies, leading to enhanced patient care and improved disease management.” He emphasised that the MoU will promote a collaborative environment and facilitate knowledge exchange, accelerating scientific progress in diagnostics and resulting in superior healthcare outcomes for the community.

The establishment of the CoE by MAHE and Roche Diagnostics India marks a forward-thinking approach to healthcare, uniting the strengths of both institutions to drive significant advancements in the field. Through this partnership, both entities aim to make substantial contributions to improving patient care and the effective management of diseases, ultimately benefiting the broader healthcare landscape.

Pradeep Singh Kharola Appointed Director General of NTA

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Kapil Suri

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June 24, 2024

The Appointments Committee of the Cabinet has appointed Pradeep Singh Kharola, a retired IAS officer from the 1985 Kerala cadre, as the new Director General of the National Testing Agency (NTA), Ministry of Education. Kharola, who currently serves as the chairman and managing director of the India Trade Promotion Organisation (ITPO), succeeds Subodh Kumar Singh in this role.

Kharola’s appointment comes amid a period of upheaval for the NTA, marked by the cancellation and postponement of major exams such as NEET-UG, UGC NET, and CSIR UGC NET. The Ministry of Education has turned to Kharola, known for his extensive administrative experience, to lead the NTA during this challenging time.

Kharola held significant positions, including the civil aviation secretary in 2019, and later shifted to ITPO in 2022. He will oversee the NTA until a permanent replacement is appointed or further orders are issued.

His appointment is critical as the NTA faces scrutiny over allegations of paper leaks and inconsistent marking practices in the NEET UG exam. These issues have eroded public confidence, prompting calls for immediate reforms. The government expects Kharola’s public administration and crisis management expertise to restore the NTA’s credibility.

Also read: H.E. Aisha Abdulla Miran appointed as the Director General of KHDA

Kharola’s primary focus will be implementing stricter security measures to prevent future paper leaks and ensure transparent examinations. He is also expected to review and refine testing procedures and marking schemes to address discrepancies. A seven-member committee has also been established to evaluate the NTA’s functioning and recommend necessary reforms. Kharola’s leadership will be vital in collaborating with this committee to enhance transparency and accountability within the agency.

The success of Kharola’s tenure at the NTA will be measured by his ability to restore public trust in the organisation. By prioritising transparency, fair testing procedures, and robust security measures, Kharola has the potential to pave the way for a brighter future for India’s competitive examinations.

Uttar Pradesh Government Modernizes Aided Schools with New Online Platform

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Kapil Suri

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June 24, 2024

In a significant move to elevate educational standards in Uttar Pradesh, the Yogi Adityanath-led government has embarked on an ambitious project to rejuvenate aided schools across the state. This initiative, part of a comprehensive action plan devised by Chief Minister Yogi Adityanath, aims to modernise over 400 aided schools by integrating a sophisticated online platform.

The cornerstone of this modernisation effort is developing a mobile application that will connect these schools and incorporate crucial data such as student and staff details. The app, which will include features like geo-tagging and a teaching staff module, is being developed by the Uttar Pradesh Electronics Corporation Limited (UPLC) under the direction of the Social Welfare Department. The UPLC has already begun selecting and allocating work to empanelled companies through an e-tender process.

The app development will follow a meticulously planned process. Initially, the selected service provider agency will conduct a detailed project study, which will be informed by feedback from department officials. This will involve gathering and compiling essential data from the aided schools, including information on students, staff, and infrastructure. The data will be adjusted according to the System Requirements Specification (SRS) to create a detailed project report to guide the app’s development.

The app will include several modules, including the registration and Management Information System (MIS). The registration module will cater to students, staff, and school infrastructure, ensuring easy accessibility and efficient data management. This platform will enable the tracking and managing of information for over 60,000 students, providing details like date of birth, gender, contact information, family background, Aadhaar validation, and academic records. Similar comprehensive data will be recorded for the staff and teachers.

The app will feature advanced security measures, including secure login and access controls for over 400 aided schools, directorate (admin) logins, ID and password management, user role definitions, and permission access. It will also include analytics and scalability capabilities, ensuring robust performance and usability. The implementing agency will provide hosting services with 16 GB RAM and one terabyte of storage, ensuring the app is optimised for search engines.

Furthermore, the project includes annual maintenance and a three-day official staff training session based on recommendations from the Computer Emergency Response Team (CERT).

This initiative by the Uttar Pradesh government marks a significant step towards modernising the state’s educational infrastructure, leveraging technology to enhance the management and quality of education in aided schools.

Education-Driven Avanse Financial Targets ₹3,500 Crore IPO

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Kapil Suri

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June 22, 2024

Avanse Financial Services Limited, an education-focused non-banking financial company (NBFC) backed by Warburg Pincus, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹3,500 crore through an initial public offering (IPO). The IPO will consist of a fresh issue of equity shares worth up to ₹1,000 crore and an offer for sale (OFS) of up to ₹2,500 crore by existing shareholders.

Under the OFS segment, shares worth up to ₹1,758 crore will be sold by Olive Vine Investment Ltd, a promoter entity; up to ₹342 crore by International Finance Corporation (IFC); and up to ₹400 crore by Kedaara Capital Growth Fund III LLP. Olive Vine Investment, an affiliate of Warburg Pincus, holds a 58.38% stake in Avanse, while IFC and Kedaara Capital own 11.36% and 13.82%, respectively.

Avanse, established in 2013, is a rapidly growing NBFC that provides personalised education financing solutions to Indian students. The company aims to democratise education and financing in India, offering solutions to education aspirants and meeting educational institutions’ growth and working capital needs.

Also read: Alef Education Set To Be The Third IPO In The UAE for 2024, Marking The First Such Offering In Abu Dhabi

According to a CRISIL report, as of March 31, 2024, Avanse is the second-largest education-focused NBFC in India by assets under management (AUM). The company’s AUM increased 2.75 times from ₹4,835.6 crore in March 2022 to ₹13,303 crore in March 2024, representing a compound annual growth rate (CAGR) of 65.86%. During the same period, loan disbursements grew from ₹2,928.5 crore in FY22 to ₹6,335 crore in FY24, at a CAGR of 47.07%.

The company reported a net profit of ₹342 crores for the financial year ended March 31, 2024, more than doubling from ₹158 crores in FY23 and increasing over 5.42 times from ₹63.2 crores in FY22. Revenue from operations grew to ₹1,727 crore in FY24 from ₹990 crore in FY23.

As of March 31, 2024, Avanse’s total borrowings, including debt securities, other borrowings, and subordinated liabilities, stood at ₹10,135 crore, compared to ₹7,210 crore in FY23. The company maintained a healthy return on equity (ROE) of 12.81% and a return on assets (ROA) of 2.83% in FY24.

The education loan sector was noted for its best asset quality and lowest gross non-performing assets (GNPA) across NBFC asset classes, and it saw substantial growth. According to CRISIL, education loans grew from an AUM of ₹7,500 crore in FY19 to an estimated ₹41,800 crore in FY24, with a CAGR of 41.1% between FY19 and FY24 and 65% between FY21 and FY24.

The book-running lead managers for Avanse’s IPO include Kotak Mahindra Capital Company Limited, Avendus Capital Private Limited, J.P. Morgan India Private Limited, Nomura Financial Advisory and Securities (India) Private Limited, Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited), and SBI Capital Markets Limited.

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