upGrad CEO Arjun Mohan quits amid growth-related challenges in the company

Edtech start-up upGrad's Chief Executive Officer Arjun Mohan has quit the company. According to a report by Reuters, the development happened in December 2022 itself but there was no mention of it in the public. In a statement to news agency Reuters, Mohan said, "I have decided to move out of upGrad after almost 3 years of service as the CEO India business. My last day of employment will be 15th Jan."
 
The reason for quitting is not clear and the company is yet to comment on the same. However, in a LinkedIn post, Mohan wrote, "After almost 3 years at the helm, I have decided to move out of upGrad. While I look back on the years at UpGrad, I feel happy about the incredible company we have built which helped so many working professionals upskill. The aspects of growth and other metrics were just outcomes of giving the customers what they aspired for."

He also wrote that he is exploring his next move. 

The news comes against the backdrop of several challenges being faced by the company. The company has been cutting costs and marketing expenses in the wake of ‘funding winter’ as late-stage funding has slowed down in the start-up ecosystem. Even edtech giant BYJU’S is reportedly seeking more time from its creditors to negotiate an agreement pertaining to its $1.2 billion loan amid profitability and funding challenges.
 
Last week, Business Today reported that upGrad-owned Harappa had laid off approximately 60 employees (or 30 per cent of its 200-strong workforce). The layoffs, which were announced in the last week of December, have primarily been in the content division. The affected employees have been told to serve a month's notice, and no other severance benefits have been offered to them. 
 
“This is the first phase of layoffs, and there could be more,” people familiar with the matter told BT. “Team leaders have been told to communicate the decision to those fired,” they added. 
 
upGrad was founded in 2015 by Ronnie Screwvala, Mayank Kumar and Phalgun Kompalli. The firm operates out of 30 offices in India across 10 cities. Outside of these, its global offices are located across San Francisco, New York, Washington, London, Singapore, Dubai, Jakarta, Vietnam, Sydney, Melbourne, and Nairobi.
 
In July last year, it acquired another edtech company - Harappa Foundation- for Rs 300 crore. upGrad also announced its plans to earmark $30 million for offline expansion as well as open 10 new campuses in 2023. 

(With inputs from Reuters)