Early employees of upGrad sell shares worth $29.5m after Temasek-led round

Thirty-seven team members of India’s upGrad sold shares worth US$29.5 million at the edtech firm’s first employee stock ownership plan (ESOP) liquidity event.

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

A recent fundraise from Temasek and International Finance Corporation was the trigger for a small secondary share sale by early and long-term employees of the firm, upGrad said in a statement.

Founded in 2015, upGrad offers executive education for data science, machine learning, and marketing, among other courses. The platform has about 1 million learners in over 50 countries and offers over 100 online courses for working professionals. The company recorded a 100% revenue growth over nine months that ended in December 2020.

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“ESOP is still a less understood and appreciated currency that allows team members to take a much longer-term view on their current place of work,” said Ronnie Screwvala, co-founder of upGrad. He added that ESOPs allow employees to share in a company’s growth and encourages them to stay with the firm.

The company added that its inclusive ESOP scheme covers over 600 employees.

The development comes amid upGrad’s plans to set aside US$250 million for potential mergers and acquisitions, and it expects to announce two deals within the next 60 days. The firm has already identified the segments and target companies that it could pursue as investment opportunities.

It is also looking to tap into markets like Africa, Indonesia, and Vietnam.