upGrad, the online startup for higher education edtech, has acquired Recruitment and HR solutions company Rekrut India.
These 100 percent acquisition is a first in India where an edtech company has acquired a recruitment company. This enables upGrad to fully participate in a learner’s life cycle – from training to employment. The size of the store was not disclosedAccording to upGrad, Rekrut has access to more than half a million learners who have completed their courses at upGrad.
Speak with Your storyThe co-founders of upGrad, Ronnie Screvwala and Mayank Kumar, said so The acquisition gives former and current upGrad students, including their alumni network, access to Rekrut’s recruiting network.
Ajay Shah, Managing Founder of the Mumbai-based startup Rekrut India, was with TeamLease for 15 years before starting in 2020. Rekrut has an extensive network of over 100 recruitment experts handle the complexity of hiring. The startup works closely with many companies, MSMEs and large companies.
Increasing the ROI of education through career results was a key differentiator for edtech major upGrad. The acquisition of Rekrut will boost the career engine by opening up broader placement opportunities and giving upGrad learners access to Recruiting partners.
UpGrad co-founders Ronnie Screwvala, Mayank Kumar and Phalgun Kompalli said in a joint statement: “Recruit will now open the floodgate of career opportunities for upGrad learners. We are therefore pleased to announce the onboarding of the team – an important step in making upGrad a career powerhouse for professionals. This move is in line with our company’s vision of promoting the career success of every member of the global workforce as a trusted partner in lifelong learning. “
Following the acquisition, Rekrut India will become a wholly owned subsidiary of upGrad. The company will operate independently, with Ajay Shah remaining as managing director.
The recruiting sector is a 15,000 rupee marketand upGrad firmly believes that an independent company in this sector will offer the edtech major strong non-linear growth opportunities.
“We are not currently giving jobs to people in the market in which we operate. We give people jobs. This is mainly due to the skills gap in India. The synergy of upGrad-Rekrut will disrupt the ecosystem and build a continuous supply chain of workers, in which Rekrut is the demand partner for state-of-the-art jobs and upGrad delivers highly qualified and sustainable talent. We will bring the learner pipeline to the relevant industry stakeholders, helping them find the right talent quickly, while providing a wider choice of career transitions for UpGrad learners, ”said Ajay Shah, Managing Director of Recruit India.
“Our M&A strategy focuses on building a broader ecosystem for higher education and careers. Rekrut is a perfect match for his ability to generate tangible ROI for our learners. UpGrad’s plans to increase the number of paid learners by 300 percent and improve the career results of these 1.2 million learners by fiscal 2025 will be further accelerated by this strategic acquisition, ”added Gaurav Kumar, President – Corporate Development, upGrad , add.
The acquisition comes at a time when online training is gaining increasing acceptance among recruiters, thawing the centuries-old gap between offline and online perception in terms of recruiting talent. Before recruiting, upGrad’s internal career service team reached around 100 to 200 hiring partners in one year and carried out over 1,000 career transitions with an average salary increase of 44 percent in 2020.
Due to Recruiting’s expertise and core business placement internships, upGrad is fairly confident that the current volume will increase tenfold and achieve meaningful and rapid career results for learners on a large scale.