In a significant leadership change at edtech unicorn Upgrad, cofounder and managing director Mayank Kumar has stepped down from his executive role to pursue a new venture, as per reports.
Sources familiar to the matter revealed that Kumar has reduced his day-to-day involvement at the Mumbai-based firm starting this month and is now focused on raising capital for his new startup, which aims to place skilled Indian labour abroad, particularly in the healthcare sector.
Coinciding with Kumar’s exit, Upgrad founder and chairman Ronnie Screwvala is stepping up his engagement at the company. Screwvala’s increased involvement is strategically aligned with the firm’s plans to go public, as the serial entrepreneur’s active role could resonate well with public market investors.
The restructuring also comes as Upgrad nears the final stages of securing $50-$60 million in funding from existing investors at a flat valuation of $2.25 billion.
Screwvala currently holds a 44% stake in the company, while Kumar retains an 8% stake, with no changes in the shareholding pattern resulting from Kumar’s departure.
The leadership reshuffle comes amidst a turbulent period for the edtech sector, which has faced challenges such as the ongoing difficulties at Byju’s and an overall market reset. Despite the hurdles, Upgrad has continued to grow, with its revenue reaching Rs 1.715 crore in FY24, a 25.54% increase from Rs 1,366 crore in the previous year, according to a 360 One investor presentation.
As Upgrad sets its sights on an IPO, Screwvala’s deeper engagement will extend to critical operating decisions, including navigating the current favourable environment for new-age firms to go public.
As of June, Upgrad’s valuation was estimated at $1.9 billion by 360 One, reflecting ongoing fluctuations in edtech valuations amid market conditions. The company continues to strengthen its offerings with over 70 courses across data science, management, digital transformation, technology, and law through partnerships with more than 20 tier 1 and tier 2 universities.