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    upGrad acquires edtech startup KnowledgeHut to tap the skilling market

    Synopsis

    Founded by Subramanyam Reddy in 2011, KnowledgeHut is an edtech company that aims to equip the global workforce with the skills of the future through outcome-based immersive learning.

    Ronnie ScrewvalaETtech
    Ronnie Screwvala, chairperson and cofounder of upGrad.
    Bengaluru: Edtech startup upGrad has acquired KnowledgeHut, which provides short-duration upskilling and reskilling courses to professionals. Financial terms of the deal were not disclosed.

    The transaction comes within weeks of upGrad earmarking $250 million for mergers and acquisitions “to drive non-linear growth for the next seven to nine months”, the company said in a statement on Tuesday.

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    Founded in 2011, KnowledgeHut has trained more than 2,50,000 professionals. The company is expected to operate as a wholly owned subsidiary of upGrad. Founder Subramanyam Reddy will be its new CEO.

    According to upGrad, the upskilling and reskilling segment has a market potential of more than $58 billion.

    “KnowledgeHut’s presence in 70+ countries will further upGrad's ambition of liberalising quality online education around the world,” upGrad's chairman and cofounder Ronnie Screwvala said.

    KnowledgeHut is likely to cross $40 million in revenue next year, 65% of which is expected to come from North America, the Middle East and Southeast Asia, according to the statement.

    UpGrad is set to hire 1,000 people in three months to fuel its expansion plans, it had said in June.

    Earlier this year, upGrad told ET that it wanted to list the company going forward.

    The online education sector has seen a number of M&A deals amid the pandemic that has caused schools and test preparation centres to shut physical classes. Last week, Byju's, India’s most valued startup, announced the acquisition of professional and higher education platform Great Learning in a $600 million cash-and-stock deal.
    The Economic Times

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