Temasek-backed online education giant upGrad has commenced preliminary groundwork for a significant initial public offering (IPO), aiming to raise between $350 million and $400 million, according to sources familiar with the matter. The company is targeting a public listing in 2027, marking a major milestone for the Indian edtech sector which is cautiously emerging from a post-pandemic valuation correction.
Parallel Strategy: IPO Prep and Inorganic Growth
In a dual-track strategy, upGrad is not only preparing for its market debut but is also actively pursuing aggressive inorganic expansion. The company is currently engaged in discussions to acquire specific assets from the troubled edtech pioneer Byju's. Simultaneously, it is exploring a potential share-swap merger with rival Unacademy, a deal that could be valued in the range of $300 million to $400 million.
These parallel moves are part of a broader business reset ahead of the targeted 2027 listing. The focus is squarely on consolidation within the fragmented edtech space, disciplined cost management, and expanding its international footprint to build a more robust and profitable enterprise.
IPO Timeline and Financial Health
Informal discussions with investment bankers have already begun, with formal pitches expected to take place in the first quarter of 2026. The IPO is likely to be scheduled for after June 2027, and the company plans to finalize its panel of lead bankers by February or March of next year.
While the company spokesperson declined to comment on specific IPO size or structure, stating conversations with bankers were "too premature," they confirmed the 2027 timeline. They emphasized that the founders, who own more than half the company, are not currently considering an offer-for-sale (OFS) component, indicating the IPO would be largely a primary capital raise for the company's growth.
upGrad's financial performance shows a path to improvement. For the fiscal year 2025, the company reported consolidated revenue of ₹1,569.3 crore, marking a 5.5% growth. Importantly, it halved its net loss to ₹273.7 crore and achieved operational profitability, a key metric watched by public market investors.
Business Reset: International Push and Offline Foray
As part of its pre-IPO restructuring, upGrad is leaning heavily on international markets, which now contribute approximately 40% of its business-to-consumer (B2C) revenue. The company has witnessed strong demand in West Asia and Southeast Asia, particularly for skilling and artificial intelligence (AI)-focused education programs.
Domestically, the firm is scaling its offline presence through learning centers to capture early-career professionals, while maintaining strict cost discipline. Founded in 2015, upGrad operates an omni-channel model offering online courses, degree programs in collaboration with global universities, study-abroad services, and offline centers.
The company was last valued at approximately $2.25 billion during its funding round in October of the previous year, as per data from Tracxn. To date, it has raised close to $329 million from investors including Temasek, IFC, EvolutionX, and 360 One.
The move by upGrad signals a potential reopening of the IPO window for Indian edtech companies, following a prolonged downturn. Other players like Imarticus, Lead, and Classplus have also outlined listing plans in the next 12-18 months. Successful recent listings, such as that of PhysicsWallah, have added momentum to this renewed interest in public markets from the education technology sector.
