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Upskilling company upGrad KnowledgeHut plans to acquire three companies to boost its growth and offer new course categories.
Subramanyam Reddy, Founder and CEO, upGard KnowledgeHut told BusinessLine that the company is looking to acquire small companies which are valued at ₹5-10 crore and are successfully running their business.
“There are a few courses that we have developed on our own, however, it takes time to build trust and to create content. There are many categories that we have not entered as yet such as cloud, deep level of Data Science and cyber security. For these categories, we will identify smaller companies who can provide these courses and can also benefit from KnowledgeHut’s support in growth,” Reddy added.
Revenue growth
KnowledgeHut was acquired by upGrad in August 2021. At the time of acquisition, KnowledgeHut had a revenue of about ₹82 crore and it now has ₹240 crore ARR (annual revenue runrate). The company is targeting to clock a revenue ₹300 crore this year.
Reddy also noted that with the three acquisitions coming onboard, KnowledgeHut can potentially hit ₹600 crore-₹700 crore in revenue, next year. Currently, 45 per cent of KnowledgeHut revenue comes from the US market, 35 per cent from India and the rest from other regions such as Europe and Singapore.
Further, 70 per cent of KnowledeHut’s revenue comes from B2C and 30 per cent from B2B business. “The reason behind 30 per cent revenue from B2B is that we do not have local teams globally. Once we perform there, the B2B business will pick up momentum and by next year, we foresee 40 per cent revenue coming from B2B business,” said Reddy.
PRISM platform
UpGrad KnowledgeHut provides short-term certification courses and bootcamp training. KnowledgeHut has built an AI driven immersive online platform called PRISM to offer these online courses. Some of the courses categories offered by KnowledgeHut include agile-focused courses, scrum and full stack development across various categories.
On the B2B front, KnowledgeHut plans to deliver around 20 categories. Currently, KnoweldgeHut is clocking ₹30 crore revenue from B2B business and aims to scale this to Rs. 60 crore this year.
“Globally it is a huge opportunity and we have the global client base. We lack in team strength, so, we are forming a global team. Once we have onboarded team members globally, we can scale up faster. We have hired people in different locations such as US, Europe and APAC. By end of this year, we will have 600 employees working for KnowledgeHut,” said Reddy.
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