upGrad, an online higher education company, has acquired The Gate Academy (TGA) for an undisclosed a mount.
The Bengaluru-based TGA is a coaching institute with 57 centres across India and 76 million video hours consumed by its almost 2 lakh enrolled learners for GATE and other entrance tests for various public/government sector jobs.
Data shows that just the government exam prep market sees around 40 million applicants every year spending in a range of ₹10,000, thus opening up a new ₹4,000-crore market for the company.
upGrad Co-founders Ronnie Screwvala & Mayank Kumar said in a joint statement, “TGA provides upGrad with a non-linear growth opportunity in new-segment entry and deeper penetration in the semi-urban & rural markets, which is in line with our core vision of making Bharat employable by adopting the mantra of life-long learning. With every strategic move, we are ensuring that upGrad leads from the front as India emerges as the teaching capital of the world.”
Post the acquisition, TGA will operate as a subsidiary of upGrad and continue with its brand name. Ritesh Raushan will pursue as the CEO of the entity to build this business line, with all the support from upGrad, who will be providing its proprietary online learning solution and tools for enhancing the learning experience, as well as its sales, marketing and content prowess.
The edtech leader also plans to invest over ₹100 crore into this test preparation subsidiary and will be developing over 20,000 hours of content in multiple languages to provide access to at least one million test-takers annually.
Ritesh Raushan, Founder & CEO, The Gate Academy, said, “we aim to employ our extensive experience in both physical and online modes of teaching to create a world-class product that will bring fundamental changes in the way technology enables learning in the future.”
For upGrad, this is a first among the series of M&As, they plan to announce over the next three months, in allied fields of higher education.