UpGrad to pay $16m to buy Australian edtech firm

Indian edtech unicorn upGrad has entered an agreement to acquire Global Study Partners (GSP), an Australia-based startup, for US$16 million to strengthen the former’s presence in the study abroad segment. UpGrad has also committed another US$10 million to further grow GSP.

Ronnie Screwvala, chairperson and co-founder of upGrad / Photo credit: upGrad

According to upGrad, GSP is likely to close 2021 with a gross merchandise value of over US$10 million, which is likely to grow 4x in the coming year.

Founded in 2015, GSP has a network of over 600 institutions, predominantly in Australia, the UK, Canada, and the US, as well as over 1,300 recruitment partners.

“GSP coming into upGrad’s fold will be a needle mover for us to attain a headstart in being a global leader in the study abroad segment,” said Ronnie Screwvala, chairperson and co-founder of upGrad.

According to a RedSeer report, the number of Indian students opting for higher education abroad is expected to reach 1.8 million by 2024, a growth of over 2.5x from 2020. Their total spending on tuition and other related expenses is expected to reach US$75 billion to US$85 billion in the same period, as online emerges as the dominant channel for availing these services.

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UpGrad recently announced the merging of its three units in India – upGrad Campus, upGrad Jeet, and upGrad KnowledgeHut – to create one parent company in the country.

At present, the upskilling platform has partnered with over 300 universities with a user base of 2 million.