upGrad Kicks Off IPO Prep Targeting 2027 Listing at $350-400 Million

Edtech platform upGrad has initiated preparations for a potential IPO (Initial Public Offering) aimed at raising between $350 million and $400 million, with a target listing date in 2027.

These IPO plans are unfolding as upGrad explores strategic moves to strengthen its market position. The company is reportedly in discussions to acquire specific assets from Byju’s, the troubled edtech firm. Simultaneously, upGrad is considering a share-swap agreement with Unacademy, potentially valued in the $300-400 million range.

According to sources familiar with the matter, these parallel initiatives are part of upGrad's strategy to revamp its operations. The company is focusing on consolidation, international expansion, and maintaining cost efficiency to pave the way for its targeted 2027 IPO, especially after the edtech sector experienced a downturn following the pandemic boom.

One source indicated that upGrad is in preliminary talks with investment bankers regarding the IPO. Formal presentations from banks are anticipated in the first quarter of the coming year. The IPO is expected to primarily involve the issuance of new shares (a primary issue), alongside a smaller component involving existing shareholders selling their stakes (an offer-for-sale).

Sources suggest the listing is likely planned for after June 2027, with the selection of investment banks expected to be finalized around February or March of the same year.

In response to inquiries, an upGrad spokesperson confirmed the 2027 IPO target. The spokesperson stated that it's too early to comment on the IPO size or primary/offer-for-sale split, and that no formal conversations with bankers have yet occurred. The founders, who own more than half of the company, are not looking at an offer for sale.

As part of its strategic reset, upGrad has increased its focus on international markets, which now generate approximately 40% of its B2C revenue. The company is experiencing significant growth in West Asia and Southeast Asia, driven by rising demand for upskilling programs and AI-focused educational offerings. Earlier reports indicated upGrad's plans to accelerate its international expansion.

Domestically, upGrad is expanding its offline presence to cater to early-career professionals, while also emphasizing cost control and profitability as it approaches its potential stock market debut.

Founded in 2015, upGrad provides a range of educational services, including online courses, degree programs in partnership with universities, study-abroad options, and physical learning centers. It serves both students and working professionals in India and various international markets.

To date, the company has raised approximately $329 million in funding, including a $60 million round last year. Investors include IFC, EvolutionX, and 360 One.

In fiscal year 2025, upGrad reported a 5.5% increase in consolidated revenue, reaching ₹1,569.3 crore. The company also reduced its net loss by half, to ₹273.7 crore, and achieved operational profitability. According to data from Tracxn, upGrad was last valued at around $2.25 billion in its October funding round of the previous year.

upGrad's IPO preparations coincide with a renewed interest in public listings within the Indian edtech sector, following a period of reduced funding and valuations. Earlier this year, it was reported that several edtech companies, including Imarticus, Lead, and Classplus, were planning IPOs within the next 12-18 months. Recent successful listings and market activity, such as PhysicsWallah's IPO and moves by Crizac and Jaro Education, have further fueled this renewed interest.