upGrad, an edtech startup focused on higher education, has acquired KnowledgeHut to enter the short-duration upskilling and reskilling segment that has a market potential of more than $58 billion.

Founded by Subramanyam Reddy in 2011, KnowledgeHut is an edtech company that aims to equip the global workforce with the skills of the future through outcome-based immersive learning.

“To leverage this market opportunity, the combined might will allow KnowledgeHut—now rebranded as ‘KnowledgeHut, an upGrad company’—to offer learners a scalable and immersive learning model, to upskill and help them drive meaningful career outcomes, through its next-gen flagship learning experience platform, PRISM,” according to a statement released on Tuesday.

While financial details of the transaction weren’t disclosed, the announcement comes weeks after upGrad earmarked $250 million for mergers and acquisitions to drive non-linear growth for the next 7-9 months.

KnowledgeHut will operate as a wholly-owned subsidiary of upGrad, which gets access to 250,000-member strong user base. Reddy, the founder and director of KnowledgeHut, will take the helm as the chief executive officer. The company is expected to clock a revenue of Rs 300 crore ( about $40 million) next year, 65% of which will be from countries in North America, Middle East, and Southeast Asia.

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KnowledgeHut has trained more than 2,50,000 professionals and empowered over 500 enterprises. It has product offerings of over 200 courses across in-demand areas of web development, AI-ML and data science, Agile and Project Management, IT services management, cybersecurity and cloud computing.

“With KnowledgeHut on board, our focus on being an integrated LifeLongLearning partner for powering career success for the global one billion workforce just got stronger,” upGrad’s chairperson and cofounder Ronnie Screwvala said. “KnowledgeHut’s presence in over 70 countries will further upGrad’s ambition of liberalising quality online education around the world.”

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Reddy said with its focus on short-term professional upskilling, KnowledgeHut is driving outcome-based immersive learning for global technologists and the wider professional community.

“Given our position in global markets, this synergy with upGrad will further strengthen and support that vision. The acquisition paves the way for upGrad to empower B2B customer segments across geographies including the US and the Asia Pacific,” he said.