upGrad, the online higher learning edtech startup has gained recruitment and employment solutions company, Recruit India.
This 100 percent acquisition is a first in India where an engineering company has acquired a promotional company. This allows upGrad to fully participate in a student’s lifecycle – from education to employment. The size of the deal was revealed, but upGrad says Recruit is accessing more than half a million students who have completed their upGrad courses.
Talking to Your Story, upGrad co-founders Ronnie Screvwala and Mayank Kumar said that acquisition allows upGrad former and current students, including their ex-network, to gain access to Recruit’s employment network.
Ajay Shah, Executive Founder of Mumbai-based Recruit India, spent 15 years at TeamLease before taking office in 2020. Recruit has an extensive network of over 100 recruiting experts which deal with complexities in employment. The start-up works closely with many companies, MSME and large enterprises.
Driving ROI from education through career outcomes was a key differentiator for the technical engineering major, upGrad. Recruitment’s acquisition will turbocharge its career engine by opening up wider local opportunities and enabling top students to access Recruit’s hiring partners.
UpGrad co-founders Ronnie Screwvala, Mayank Kumar and Phalgun Kompalli said in a joint statement, “Recruit will now open up the flood of career opportunities for upGrad students. power for professionals. This move is fully consistent with our company’s vision of driving career success for every member of the global workforce as their trusted lifelong learner. ”
After the acquisition, Recruit India will become a 100 percent subsidiary of upGrad. The company will operate independently, with Ajay Shah continuing as the Managing Director.
The recruitment sector is Rs 15,000 crore market, and upGrad says it firmly believes an independent company in this sector will provide strong nonlinear opportunities for the core technology.
“Currently in the market in which we operate, we do not give jobs to people; we give people jobs. This is mainly due to the skill in India. The upGrad Recruit synergy will disrupt the ecosystem and build an end-to-end supply chain of manpower, where Recruit is the demand partner providing cutting-edge jobs and upGrad will provide the highly experienced and future-ready talent. We will lead the pipeline of students to the relevant industry stakeholders, thus helping them find the right talent quickly, and will also offer a wider choice of career transition for up-learners, ”said Ajay Shah, Managing Director, Recruit India.
“Our M&A strategy is focused on building a broader higher education and career ecosystem and Recruit fits perfectly with its capabilities to drive a perceptible ROI for our students. UpGrad’s plans of 300 percent growth in its paid learning base and leading career outcomes for these 1.2 million students before FY2025 will be further accelerated by this strategic acquisition, ”added Gaurav Kumar, President – Corporate Development, upGrad.
The acquisition comes at a time when online education has begun to gain greater acceptance among recruiters, thus fusing the old offline internet perception of hiring talent. Prior to Recruitment, upGrad’s internal career service team contacted approximately 100-200 hiring partners per year and led more than 1,000 career transitions in 2020, with an average salary increase of 44 percent.
With the expertise of Recruit and core business drive placements, upGrad is fairly confident that its current volume will increase by 10x and lead to significant and rapid career results on a large scale for learners.