Online higher education company upGrad has agreed to acquire The Gate Academy (TGA) as part of its entry into the test preparation market.
Bengaluru-based TGA is one of India’s premier coaching institutes with 57 centres across the country and 76 million video hours consumed by its almost two lakh enrolled learners for GATE and other entrance tests for various public/government sector jobs.
TGA provides upGrad a non-linear growth opportunity in new-segment entry and deeper penetration in the semi-urban and rural markets, which is in line with our core vision of making Bharat employable by adopting the mantra of LifeLong Learning, upGrad co-founders Ronnie Screwvala and Mayank Kumar, said in a joint statement.
TGA will operate as a subsidiary of upGrad and will continue with its brand name.
Ritesh Raushan, founder and CEO of The Gate Academy, will pursue as the CEO of the entity to build this business line and upGrad will be providing its online learning solution for enhancing the learning experience, as well as its sales, marketing, and content prowess.
The edtech company said it also plans to invest over Rs 100 crore into this test preparation subsidiary and will be developing over 20,000 hours of content in multiple languages to provide access to at least one million test-takers annually.
Online education business is attracting significant investment from VC funds. Students are opting for leading edu-tech platforms because they assist them for preparing for examinations and proof read my paper.