upGrad Launches AI Incubator with INR 100 Cr Investment to Boost Indian AI Startups Through the upGrad AI Incubator, the company plans to invest in 5-6 AI startups in the coming months, taking minority stakes to support innovation while allowing startups to operate independently.
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Mumbai-based edtech unicorn upGrad has launched the upGrad AI Incubator, a new initiative aimed at fostering homegrown AI startups focused on learning, skilling, and workforce development.
To support this vision, upGrad has allocated INR 100 crore to provide seed capital and infrastructure to emerging startups, encouraging plug-and-play AI innovations that can be integrated across industries.
This move comes on the heels of upGrad's recent collaborations with industry and government bodies to equip over a million learners with AI skills and establish AI Centers of Excellence across India. The incubator is positioned as a strategic step to strengthen AI-driven workforce development and enhance India's role as a global technology disruptor.
Through the upGrad AI Incubator, the company plans to invest in 5-6 AI startups in the coming months, taking minority stakes to support innovation while allowing startups to operate independently. The incubator will focus on developing personalised learning paths, adaptive tutoring models, and intelligent assessment tools to reduce test fatigue and enhance real-world application of AI in education.
"Having AI capabilities is not a calendared program anymore, it's a fundamental/ bare minimum skill. India is sitting at an epicenter where not only do we want to disrupt but also be the disruptor and so this 'upGrad AI Incubator' is that opportunity - a strong incubating combinator that will turbocharge our people resources and aspirations to the next phase of growth we want to see," said Ronnie Screwvala, Co-founder and Chairperson, upGrad.
"As AI is in its early stages, we are committed to building robust infrastructure that supports and trains millions across all economic levels - through upskilling and nurturing ideas and talent. This move is a major augmenter for strengthening the workforce development capabilities and creating jobs of tomorrow while sending strong growth signals as a self-reliant, technologically empowered nation," he added.
As its first investment under this initiative, upGrad has backed ZuAI, a Bengaluru-based startup developing a 24/7 AI-powered personal tutor for students. While the investment amount remains undisclosed, this signals upGrad's commitment to building a strong AI-driven education ecosystem.
Founded in 2015, upGrad is one of Asia's largest integrated learning, skilling, and workforce development platforms, offering online and hybrid programs in collaboration with top Indian and global universities. The company's AI Incubator marks another major step in its vision to scale AI education and innovation in India.
