susGrad, the online higher education startup edtech, has acquired recruitment and staffing company, Rekrut India.
This 100% purchase is the first in India where an edtech company has acquired a recruitment company. This allows upGrad to have a full involvement in a student’s life cycle – from education to employment. The size of the transaction was not disclosed, but upGrad says Rekrut has access to more than half a million students who have completed their courses on upGrad.
Talking to Your story, Ronnie Screvwala and Mayank Kumar, co-founders of upGrad, said this the acquisition allows former and current upGrad students, including their network of graduates, to have access to Rekrut’s employment network.
Ajay Shah, founder of the Rekrut India startup in Mumbai, spent 15 years at TeamLease before starting in 2020. Rekrut has an extensive network of over 100 recruitment experts which deals with the complexity of employment. The startup works closely with many companies, SMEs and large enterprises.
Managing the return on investment in education through career outcomes has been a major differentiator for edtech major, upGrad. The acquisition of Rekrut will fuel its career engine by opening up wider placement opportunities and allowing upGrad students to access Rekrut’s employment partners.
UpGrad co-founders Ronnie Screwvala, Mayank Kumar and Phalgun Kompalli said in a joint statement: “Rekrut will now pave the way for career opportunities for upGrad students. Therefore, we are pleased to announce the integration of the team – a significant step in transforming Grad into a career force for professionals. This move is fully aligned with our company’s vision to drive career success for every member of the global workforce as a trusted partner in lifelong learning. “
Following the acquisition, Rekrut India will become a 100% subsidiary of upGrad. The company will operate independently, with Ajay Shah continuing to be CEO.
The recruitment sector is a market of 15,000 lei, and upGrad says it strongly believes that an independent business in this sector will provide strong opportunities for nonlinear growth for major edtech.
“Currently, in the market in which we operate, we do not offer jobs to people; we offer people jobs. This is mainly due to the lack of skills in India. The upGrad-Rekrut synergy will disrupt the ecosystem and build an end-to-end supply chain, where Rekrut is the application partner providing state-of-the-art jobs, and upGrad will provide highly qualified and prepared talent for the future. We will lead students to relevant industry stakeholders, helping them find the right talent quickly, while providing a wider range of career transition for upGrad students, ”said Ajay Shah, General Manager, Rekrut India.
“Our M&A strategy is focused on building a higher education and career ecosystem, and Rekrut fits perfectly with its capabilities to drive a tangible ROI for our students. UpGrad plans to increase its student base paid by 300 percent and lead career results for these 1.2 million students by fiscal year 2525 will be further accelerated with this strategic acquisition, ”added Gaurav Kumar, President – Development corporate, upGrad.
The acquisition comes at a time when online education has begun to gain greater acceptance among recruiters, thus thawing the old difference in offline-online perception of talent hiring. Prior to Rekrut, upGrad’s internal career services team reached approximately 100-200 hiring partners in one year and led more than 1,000 career transitions in 2020, with an average salary increase of 44%.
With Rekrut’s expertise and core business placements, upGrad is quite confident that its current volume will increase 10fold and generate significant and rapid career results on a large scale for learners.