upGrad acquires Harappa Education
UpGrad, the unicorn of the edtech industry, has bought Harappa Education for $300 million in cash and equity.
The co-founders of Harappa, Pramath Raj Sinha and Shreyasi Singh, as well as James Murdoch’s Lupa Systems and former Star & Disney India chairman Uday Shankar, will sit at the upGrad Cap table, according to a statement from the firm.
The New Delhi-based start-up provides self-paced courses and programmes to help learners with must-have thrive skills, which are essential set of cognitive, social, and behavioural skills. It was founded by Sinha, the Founding Dean of the Indian School of Business (ISB) and the Founder Trustee of Ashoka University, and Shreyasi Singh, an ex-editor of India Inc. The business claims to have 100 medium- and large-sized businesses on its active client list.
We plan to provide a full range of products to our enterprise partners, much like the integrated approach we were able to achieve in the B2C market. Harappa’s vital skills and our combination of upskilling courses would make us stand out. According to Ronnie Screwvala and Mayank Kumar, co-founders of upGrad, “We see high demand from our clients and with Harappa coming in, we feel we’ll be able to develop exponentially inside the market as we cross-leverage the synergies.”
This is upGrad’s second acquisition of the month. For an unknown sum, the company totally purchased Bengaluru-based staffing and recruitment agency WOLVES India at the beginning of this month. Through Rekrut, an entirely owned subsidiary of upGrad, the transaction was completed. The seven-year-old start-up is an expert in placing tech talent across startups, mid-sized companies, and major organizations abroad and in India.
The acquisition occurs as start-ups across the board go through a phase of cost rationalization to address the funding slowdown. The first on the list of businesses that have suddenly become frugal are edtech start-ups, which are heavily staffed in sales and marketing. Around 1,200 of Lido Learning’s workers were given a resignation request in February. 925 employees of Unacademy were let go in April; more than 600 employees of Vedantu received pink slips in May; 145 employees of FrontRow were let go; and 500 employees, according to Byju’s, were let go.