MUMBAI, Dec. 16 -- Temasek-backed upGrad has begun early preparations for an initial public offering (IPO) that could raise $350-400 million, according to two people close to the development. The IPO push comes even as the company explores inorganic expansion through potential acquisitions and mergers.

upGrad is currently in talks to acquire select assets of beleaguered edtech firm Byju's and is also exploring a potential share-swap deal with Unacademy valued at $300-400 million, the people said.

The parallel moves come as upGrad looks to reset its business ahead of a targeted 2027 listing, focusing on consolidation, overseas expansion and cost discipline after the edtech sector's post-pandemic bust.

"The company is in informal discuss...