upgrad calls off acquisition of Exampur

The much-anticipated union between edtech unicorn upGrad and government test-prep startup Exampur announced in August 2022, has unfortunately been called off.

According to two anonymous sources familiar with the situation, a portion of upGrad Jeet employees have been asked to resign as their positions are no longer required by the company. This is due to an internal restructuring process that has resulted in some roles becoming redundant.

To ease the transition for affected employees, we are offering three months of medical coverage extensions, notice period payouts, and assistance in job searches.

This year, upGrad made the decision to merge its own test-prep vertical, upGrad Jeet, and Exampur teams. Because of this significant change in operations, many employees from upGrad Jeet had to relocate from Bengaluru to Noida.

In a recent statement to businessline, upGrad proclaimed-

“We categorically denied any cutbacks over team strengths at One upGrad very recently. In the last 60 days, we have added over 2,000 to our team strength, and just in the last 2 weeks, we have remained as a net hirer of 200.”

According to one of the sources quoted, there was a disagreement over Exampur’s valuation that ultimately led to the two companies going their separate ways. It stated-

“Earlier the two companies have agreed on a ₹300 crore valuation but later there were talks of Exampur valuation being around ₹240 crore because of low revenue, which potentially led to the fall out.”

As per upGrad’s data released in August, Exampur was on the path to achieving revenue of ₹70 crore this fiscal year.

Nevertheless, Vardhan Gandhi—co-founder of Exampur—stated-

“Our revenue was the same at which the term sheet was proposed. There was a difference in the business lines. upGrad is more enterprise-business focused and we are very enthusiastic about Test-prep. This is the only reason why deal has been called off.”

upGrad declared that its purchase of Exampur has been postponed. The company’s spokesperson said in a statement-

“We are extremely focused on Adult Learning presently and have taken a strategic call to hold with our Exampur partnership for now, and are happy to re-evaluate this in the future. There have been no disagreements on the valuation with Exampur.”

In order to achieve its edtech ambitions, upGrad Jeet is consolidating all M&As. During this process, there will be scrutiny of performance and profile redundancy that goes on until March 2023. By the end of that period, One upGrad’s team strength in India would have grown by 500 members!

In November, upGrad declared its goals to amalgamate all of its mergers and acquisitions in India into a single entity known as ‘One upGrad,’ with the integration procedure slated to be finished by March-June 2023.

Ronnie Screwvala, Mayank Kumar, and Phalgun Kompalli’s upGrad have taken the acquisitions landscape by storm in 2022. Not only did it acquire Exampur, but four other deals were also sealed this year with Centum Learning, WOLVES Recruitment firm, Harappa and Insofe!

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