Edtech unicorn upGrad has committed Rs 100 crore to launch an AI incubator aimed at fostering innovation in the learning and skilling space. The initiative, announced by upGrad Founder and CEO Ronnie Screwvala, will focus on supporting AI-driven startups that enhance education and workforce development.
Speaking in an interview, Screwvala emphasized that while traditional education follows a set curriculum, the skilling and learning sector is evolving rapidly. He stressed the need to explore innovative solutions to keep up with the changing demands of the workforce.
Investment in AI Startups for Scalable Learning
The AI incubator will not only support startups through incubation but also involve upGrad taking minority stakes in five to six early-stage companies. The goal is to foster innovation without exerting excessive control over these startups.
“We are putting Rs 100 crore into this initiative. The funds will be used for incubation as well as for acquiring minority stakes in promising early-stage startups. We don’t want to get into the valuation game, but rather enable innovation in a more frugal and efficient manner,” Screwvala said.
The initiative follows upGrad’s recent announcement in Davos of establishing an AI Center of Excellence in partnership with the Maharashtra government, with an investment of Rs 2,150 crore. Additionally, upGrad has partnered with Microsoft to train 10 lakh STEM professionals in AI over the next year.
AI’s Role in Reshaping Education
According to Screwvala, the education landscape is set for dramatic changes over the next few decades, and upGrad aims to be at the forefront of this transformation.
“We are at the epicenter of an AI revolution in learning. Not only do we want to be a part of the disruption, but we also want to lead it. The education sector will change significantly in the next five years, and we want to stay ahead of the curve,” he stated.
Also read: upGrad and Maharashtra Launch AI Education Initiative
The upGrad AI Incubator will focus on startups that enhance scalable content creation, AI-driven tutoring, and real-world applicability of knowledge. The goal is to drive cost-efficient growth, reduce testing fatigue, and expand access to high-quality education.
As part of this initiative, upGrad has already invested an undisclosed amount in ZuAI, a startup that offers an AI assistant tool designed to address students’ specific learning challenges.
By investing in AI-driven education models, upGrad is positioning itself as a leader in the evolving learning and skilling landscape, ensuring that both students and professionals are equipped for the future workforce.
