upGrad Moves to Acquire Unacademy in 90% Valuation Crash Deal

Education platform upGrad is set to acquire Unacademy in an all-stock deal valued at around $218 million, The Economic Times reported, citing sources. The transaction would value Unacademy at over 90% below its 2021 peak valuation of $3.4 billion during the funding boom.

upGrad, led by Ronnie Screwvala, is expected to seek approval from the Competition Commission of India (CCI) later this week, the report added. The company is also in discussions to raise an internal round of about ₹375 crore from existing investor Temasek and Screwvala himself.

Unacademy has raised about $880 million to date, including a $440 million round in August 2021 led by Temasek—its largest funding round. In comparison, upGrad has raised roughly $330 million and was last valued at $1.9 billion.

The proposed acquisition would be among the most significant consolidation moves in India’s edtech sector, which continues to grapple with a post-pandemic slowdown.

The surge in online learning seen during Covid-19 has tapered off, and the industry is still dealing with the fallout from the collapse of Byju’s, once valued at $22 billion.

Founded in 2010 by Gaurav Munjal, Hemesh Singh, and Roman Saini as a YouTube channel, Unacademy pivoted to a full-fledged edtech platform in 2015. In recent years, it has shifted from a purely online model to one that increasingly focuses on offline centres amid changing demand dynamics.

A Deal Amid Decline

Talks between the two companies began in November last year but stalled in January due to differences over valuation, the ET report said. In March, Screwvala and Munjal announced on social media that they had signed a term sheet for a 100% share-swap deal.

For Unacademy, the deal could bring closure after multiple rounds of acquisition talks with various suitors.

The company is aiming to generate around ₹400 crore in revenue in calendar year 2026, according to sources—down from previous years of declining topline. In FY25, Unacademy reported operating revenue of ₹702 crore, a 16% drop year-on-year.

India’s edtech sector, the second-largest globally, is undergoing a structural shift from the rapid, pandemic-driven surge to a steadier, more sustainable growth model. The industry is valued at $12.75 billion in 2024, with the market is expected to expand to $61.25 billion by 2035. This growth in edtech sector is now primarily being driven by AI-led personalisation, rising focus on regional language content, and a decisive move toward hybrid learning models that combine online and offline formats.