upGrad, India’s largest online higher education company, announces its entry into the test preparation market with the 100% acquisition of The Gate Academy (TGA) for an undisclosed amount.
Bengaluru based TGA is one of India’s premier coaching institutes with 57 centers across India and 76 million video hours consumed by its almost 2 lakh enrolled learners for GATE and other entrance tests for various Public/Government Sector jobs.
This move marks the aggressive entry of the higher edtech leader upGrad into the overall Test Prep market. Data shows that just the Government Exam Prep market sees around 40 Million applicants every year spending in a range of INR 10,000, thus opening up a new INR 400 Billion market for the company.
Post the acquisition, TGA will operate as a subsidiary of upGrad and will continue with its brand name. Ritesh Raushan will pursue as the CEO of the entity to build this business line, with all the support from upGrad, who will be providing its proprietary online learning solution and tools for enhancing the learning experience, as well as its sales, marketing, and content prowess.
The edtech leader also plans to invest over INR 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.