B2B or B2C? Which section to bet on? Where should the money go? These questions have long baffled edtech firms. But Srikanth Iyengar – CEO of upGrad Enterprises – the enterprise arm of upskilling platform upGrad – believes it’s no longer an either-or decision.
He sees B2B (business-to-business) and B2C (business-to-consumer) as two sides of a coin, or as he likes to call yin and yang.
“B2C and B2B are yin and yang in some ways,” says Iyengar your story In an exclusive interview. “B2B is a very integral part of our business, and it complements what we have on the B2C side,” he adds.
Yin and Yang is a Chinese philosophical concept that describes two polar but interconnected forces that make up a whole.
It may sound philosophical, and maybe even a little poetic, but he firmly believes in the metaphor of the enterprise CEO, which he refers to frequently – because he doesn’t view the enterprise segment in isolation from upGrad’s overall operations.
Almost a decade ago, upGrad entered the edtech space with a sharp focus on individual learners through its B2C platform, offering courses in data science, management, marketing, and technology.
Over the years, the edtech firm has added some B2B initiatives, including upGrad for business and workforce development, as well as Centum Learning, a corporate training platform, and Harappa Education, an online learning platform—both acquired in 2022. It just was. In April this year upGrad created a separate vertical for the enterprise segment, combining its various efforts.
The rationale behind this is to create an “ecosystem” that caters to both individual and corporate skill needs, says Iyengar. B2C empowers individuals to grow their careers, while B2B prepares organizations to stay competitive, he adds.
Through the B2C segment, upGrad provides students with knowledge in areas such as data science, machine learning, AI, cloud computing, and cyber security. For corporate executives, upGrad offers technical and leadership programs and upskilling courses that include AI-focused modules.
While the B2C segment will remain the cornerstone of upGrad’s overall portfolio, its B2B arm will soon emerge as a major growth engine of the company, with the potential to surpass B2C as well in the future, says Iyengar.
The enterprise wing may have been formed nine months ago, but it is already moving fast.
The upGrad enterprise is generating strong revenue growth and is poised to be a major contributor to upGrad’s overall profitability in the future. Currently, 20-25% of upGrad’s revenue comes from the B2B segment, while the rest comes from the B2C space.
B2B promotion
Given the volatile fortunes of the consumer segment, many edtech companies have begun diversifying their offerings over the past few years with a strong emphasis on B2B.
Anil Joshi, managing partner of Unicorn India Ventures, puts this into perspective.
He believes that the enterprise segment operates on demand-driven opportunities, making its revenue stream more predictable, unlike the B2C segment, where upskilling is often an additional pursuit for learners.
“The B2B edtech business model is gaining traction and will continue to gain acceptance,” he says.
However, B2C will remain relevant for professionals, providing upskilling opportunities at their convenience, asserts Joshi.
On the other hand, in a changing environment, many enterprises actively want to invest their employees in high efficiency, so their skills are better aligned with their business objectives. This helps them retain talent for a long time.
While B2C business is important to upGrad’s business, the company is betting on the B2B segment for brand development, global expansion, and building relationships with customers.
“upGrad Enterprise is a great way for upGrad to become a truly global company in key markets, working with some of the largest companies in the world,” says Iyengar.
According to reports, upGrad’s B2B skilling and reskilling business is turning profitable.
The enterprise segment is showing strong year-over-year revenue growth, which is not only significant but also profitable, contributing meaningfully to the company’s overall bottom line, says Iyengar.
He also pointed out that the segment is “profit enhancing” for the company – meaning it generates more profit than it costs to run the business.
“We expect the enterprise business to be more profitable than the consumer business,” he says, but hastens to add that the consumer segment is still a large volume business. And he never fails to reiterate that upGrad needs both yin and yang for continued growth.
upGrad accumulated revenue of Rs 1,876 crore in FY24, which after Ind-AS adjustments, totaled Rs 1,547 crore. According to reports, it is aiming to touch a top line of around Rs 2,400 crore for the current financial year.
“In a few years, the enterprise business will account for about 40% of upGrad’s revenue,” Iyengar said, adding that the enterprise business is targeting at least 30-40% annual growth.
However, achieving all this will not be easy as the enterprise segment will have to expand at a faster clip than the company as a whole.
upGrad has a roadmap for long-term growth and profitability: goals related to operational efficiency, continuous innovation, streamlining delivery, building a strong delivery network, prioritizing learning outcomes, and building long-term relationships.
In FY25, the enterprise unit trained more than 350 clients, including large Indian corporates with global operations, leading Indian technical services firms that generate most of their revenue overseas, and Some Fortune 500 companies are included.
The growth in its enterprise segment can be broadly attributed to three key factors — deep relationships with customers; Focus on technology, including data and AI; and global expansion, particularly in North America and Europe.
Infographic Design: Nihar Apte
Building long-term relationships
upGrad Enterprise’s clients include global MNCs, tech and BFSI giants, leading US multinationals and Fortune 500 companies.
Strategic collaboration is an integral part of a company’s B2B game. For example, it has partnered with HCL Tech to co-create content and programs focused on GenAI and related technologies.
To deepen its relationships with existing customers, upGrad strives to expand its offering to increase revenue per user and customer lifetime value, enhance customer loyalty, and improve operational efficiency.
The aim is to become the preferred partner for customers, thereby gaining repeat business and referrals. In fact, 60-70% of upGrad Enterprise’s revenue already comes from returning customers.
AI will shape the future
According to industry experts, 2025 is likely to see a greater emphasis on upskilling and reskilling, especially related to AI, and upGrad is keen to capitalize on this opportunity.
Iyengar is gung-ho about the potential of AI and its impact on higher intelligence.
“I’ve had the privilege of working in technology-related businesses for almost 25 years, and if I look back, I can tell you that I haven’t been this excited since the so-called dot-com boom,” he says. .
He emphasizes that AI will not replace humans but will create a “human plus AI” era, which will push humans to become highly efficient and transition into roles very different from today’s.
With generative AI (GenAI) impacting various stages of business, there is considerable interest from enterprises for integrated programs that combine technology aspects with change management. It is important for both entry-level employees and mid-level managers to learn how to use AI tools and how to drive transformation in business operations using these tools.
According to Iyengar, upGrad Enterprises’ programs not only explain the basic concepts of machine learning and AI but also highlight how businesses are using/expecting to use GenAI, how the technology fits into the broader landscape, and what unique capabilities and applications it brings. Table.
For AI-focused programs and courses built around GenAI—where ideation and the ability to collaborate and adapt in real-time are important—upGrad emphasizes interactive learning through small group activities and projects.
Many of these courses offer access to virtual labs developed in partnership with organizations such as HCL and expert assessment partners – they feature sandbox environments and synthetic data to simulate real-world use cases, ensuring practical, intensive learning.
Expanding global footprint
The venture unit has leveraged its ties in India to expand globally in regions such as the US, UK and Europe. It currently serves partners in over 20 countries and aims to double its global presence in the coming years.
Optimism in Europe and the US – the world’s largest skills market – stems from economic stability, innovation, government support, and a corporate focus on continuous learning.
The Middle East, including Saudi Arabia, Abu Dhabi and Dubai, is also emerging as a growth region, thanks to the region’s investment in AI and building a tech-ready workforce.
“Entering the new calendar year, many parts of the world are likely to be in a strong position for investment, and we expect to see the benefits of that,” says the venture chief.
About a quarter of UpGrad Enterprise’s business comes from outside India, while three-quarters comes from within.
Iyengar expects this structure to change as upGrad expands globally due to growing demand for AI courses in the international market. The company aims to have at least 40% of its B2B learners outside India in two years.
Infographic Design: Nihar Apte
Sustaining the growth momentum
To capitalize on its growth momentum, the enterprise unit is selectively investing in branding and marketing. It has strengthened its team by onboarding senior leaders in sales and marketing.
The enterprise unit continues to hire mid- and senior-level talent in sales, delivery functions, customer-facing roles, global customer engagement, consulting technology, and core tech.
upGrad, which competes with Eruditus, Great Learning, Simplilearn, Coursera and Udemy in the skills space, has about 4,000 employees. About 500 of them are in enterprise units; Since April, 54 people have been hired, 25% of whom are in leadership positions.
Given the flood of layoffs in the edtech field, upGrad is aware that it must be prudent when it comes to hiring. Even as it bolsters its enterprise team, the company is hiring carefully and selectively for specific roles, Iyengar says.
While the enterprise unit is growing rapidly, sustaining and scaling this momentum will be challenging, especially as it seeks opportunities in multiple geographies. This includes understanding and dealing with cross-border and cultural factors.
“It’s important to be very aware of not offending people within cultural boundaries. You have to make the skill interesting – with a bit of humor, banter and camaraderie. However, if not done right, that can cross the line,” the CEO notes.
He explains that learning styles differ from country to country: in India, students are more inquisitive and participatory, which often leads to a chaotic environment in small groups; In Northern Europe, people are less arrogant but equally interested; And in the United States, students expect concise, to-the-point skills.
upGrad is tailoring its B2B offerings globally by incorporating localized case studies and emphasizing sector-specific workplace values and personalized learning with capstone projects and one-on-one mentorship and flexible delivery modes.
These results-oriented features ensure that programs meet market demands in each geography, says Iyengar. Programs are supported by more than 3,000 trainers and skilled professionals who are experienced and can adapt to the unique aspects of different markets.
“When we work in say 40 countries, as opposed to 20, we will be richer for the experience,” he signed off.
(Cover image and infographics designed by Nihar Apte.)