Education company upGrad KnowledgeHut plans to acquire three companies to accelerate its growth and offer new course categories.
Subramanyam Reddy, Founder and CEO, upGard KnowledgeHut said Activity area that the company seeks to acquire small businesses valued between ₹5-10 crore and are successfully running their business.
“There are a few courses that we have developed ourselves, however, it takes time to build trust and create content. There are many categories that we haven’t entered yet, such as cloud, level depth of data science and cybersecurity. For these categories, we will identify small businesses that can provide these courses and can also benefit from KnowledgeHut’s growth support,” added Reddy.
KnowledgeHut was acquired by upGrad in August 2021. At the time of acquisition, KnowledgeHut had revenue of approximately ₹82 crore and it now has ₹240 crore ARR (Annual Revenue Rate). The company aims to register a turnover of ₹300 crore this year.
Reddy also noted that with the three upcoming acquisitions, KnowledgeHut can potentially reach ₹600 crore to ₹700 crore in revenue next year. Currently, 45% of KnowledgeHut’s revenue comes from the US market, 35% from India, and the rest from other regions such as Europe and Singapore.
Additionally, 70% of KnowledeHut’s revenue comes from B2C and 30% from B2B. “The reason behind the 30% revenue from B2B is that we don’t have local teams around the world. Once we get there, the B2B business will grow and by the year next, we expect 40% of revenue to come from B2B business,” Reddy said.
UpGrad KnowledgeHut offers short-term certification courses and bootcamp training. KnowledgeHut has built an immersive AI-driven online platform called PRISM to deliver these online courses. Some of the course categories offered by KnowledgeHut include courses focused on Agile, Scrum, and full stack development in various categories.
On the B2B front, KnowledgeHut plans to offer around 20 categories. Currently, KnoweldgeHut generates revenue of ₹30 crore from B2B activities and aims to increase it to Rs. 60 crore this year.
“Overall, it’s a huge opportunity and we have the global customer base. We lack team strength, so we’re building a global team. Once we onboard the team members globally, we can scale faster. We have hired people in different locations such as the US, Europe and APAC. By the end of this year, we will have 600 employees working for KnowledgeHut,” Reddy said.
April 21, 2022