Upgrad co-founder Mayank Kumar has stepped down from his executive role. The move signals a shift in the leadership dynamics and it is evident that the edtech space is facing pressure in a post-pandemic world. Kumar has been instrumental in the rise of Upgrad and he is now stepping into his next venture.
The exit of Kumar is changing tides within Upgrad and the broader edtech sector as well. Founder and Chairman Ronnie Screwvala is stepping up his involvement. The reshuffle seems more strategic than reactive. Screwvala is an established entrepreneur with an astute understanding of public and private markets. He seems to be now well-positioned to guide Upgrad through its next major phase and that is the potential IPO.
The Indian edtech sector is in the midst of a significant reset. Byju’s was once the crown jewel of India’s edtech revolution and it is now struggling. The overall market sentiment for these companies has cooled down. Its revenue has been increasing by 25.54% in FY24. Kumar’s departure has not impacted the company’s shareholding structure. Screwvala maintains a dominant 44% stake in the company. The edtech sector is currently facing considerable scrutiny and the stability offered by Screwvala’s leadership might be just what Upgrad needs to stay on course.
The $2.25 billion valuation of Upgrad in its latest funding round signals continued faith of investors. There is no denying that the challenges of the broader market loom large. Yet, with a diversified course portfolio, strong university partnerships, and a strategic shift in leadership, Upgrad seems well-poised to weather the current turbulence.
