New Delhi: UpGrad, a key player in edtech, is apparently in talks to buy US-based Udacity. This edtech company has been on the market for a few months and is considering selling a majority stake through an equity swap. According to media reports, Udacity is currently valued at over USD 100 million, and recent negotiations suggest a valuation range of USD 100 million to USD 120 million.
According to 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.
Udacity, 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 providing programmes in artificial intelligence, machine learning, data science, cloud computing, cybersecurity, digital marketing, and product management. These programmes give skills that apply to the industry.
As part of its development into the Pacific region, it stated earlier this month that it planned to build a medical institute in the Republic of Vanuatu. UpGrad raised Rs 300 crore through an internet rights issue in March with the assistance of its present shareholders and founders, indicating its commitment to organic and inorganic expansion across several formal education verticals.
