In FY21, ending March 31, 2021 upGrad had reported a consolidated revenue of Rs 302.26 crore, and net losses of Rs 211 crore, according to the company’s filings. With the fourth quarter (January – March) of the ongoing fiscal (FY22) being profitable, upGrad expects to curtail losses to about Rs 150 crore in FY22.
For upGrad, the expected revenue growth comes on the back of the company making close to five acquisitions in the current fiscal year, contributing to its topline. This financial year, the company announced the acquisition of Impartus Innovations, KnowledgeHut, Talentedge, Work Better Training as well as Global Study Partners.
“Profitability is an absolute focus area. On a consolidated business, we have enough scale now to keep our profitability going. And that is on account of our diversification of courses (from undergrad to doctorate) as well as the high margins that we make. In addition, the completion track record for our courses is 85%, and that leads to referrals (to get more students into the ecosystem),” firm co-founder and chairperson Ronnie Screwvala said.
In the continuing quarter of the present fiscal (FY’22), Screwvala added that upGrad is in line to clock revenues of virtually Rs 600 crore (or roughly $80 million), taking its annual revenue run charge to virtually Rs 2250 crore (or $300 million). Further, 80% of the agency’s revenues proceed to return from the India market.
“Quarterly revenue rate for upGrad now is $80 million or roughly Rs 600 crore which translates to an annual run rate of Rs 2250 crore or $300 million. The first nine months of this year were in investment mode on various new initiatives from study abroad to short courses, so the total loss for the firm would be around Rs 150 crore, with the fourth quarter being profitable. Overall upGrad has a positive working capital as all fees are received upfront for the full year,” added Screwvala.