upGrad, an online higher education company, has announced the 100% acquisition of The Gate Academy (TGA) for an undisclosed sum, to foray into test-preparation market, the company said.
Bengaluru-based TGA has 57 coaching centres across India and its almost two lakh enrolled learners for GATE and other entrance tests so far, have consumed 76 million video hours.
“Data shows that just the government examination-preparation market sees around 40 million [4 crore] applicants every year spending in a range of ₹10,000 [per applicant], thus opening up a new ₹400-billion [₹40,000- crore] market for the company,” the company said in a statement.
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Ronnie Screwvala and Mayank Kumar, co-founders of the company, in a joint statement, said,“TGA provides us a non-linear growth opportunity in new-segment entry and deeper penetration in the semi-urban & rural markets.”
“With every strategic move, we are ensuring that our company leads from the front as India emerges as the teaching capital of the world,” they said.
Post the acquisition, TGA will operate as a subsidiary and will continue with its brand name. Ritesh Raushan, the founder of TGA, will pursue as the CEO of the entity to build this business.
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upGrad also plans to invest over ₹100 crore into this subsidiary and develop over 20,000 hours of content in multiple languages to provide access to at least one million test-takers annually.