UpGrad Acquires Unacademy For Just Over $200 Mn, Valuation Down Sharply From $3.4 Bn Peak

Ronnie Screwvala-led UpGrad has completed its acquisition of Unacademy for just over $200 million, Unacademy cofounder and CEO Gaurav Munjal said on September 1.

"Today, Unacademy has closed its acquisition by UpGrad for just over $200 million," Munjal said in a post on X (formerly Twitter).

The transaction represents a decline of more than 94% from Unacademy’s peak valuation of around $3.4 billion in 2021.

Munjal acknowledged the steep fall, saying, “We raised at a peak, but sold at a fraction of that.”

Unacademy had become a unicorn six years ago amid the rapid expansion of India’s edtech sector. Munjal said the company now has a topline of around ₹400 crore, with most of its businesses profitable or near-profitable, and ₹900 crore in the bank.

Munjal said the acquisition was not driven by a shortage of capital. Instead, he attributed the decision to the opportunity to work with upGrad founder Ronnie Screwvala and build what he described as a stronger path for the education ecosystem.

"With a topline of around 400 crores, most businesses profitable or near-profitable, and 900 crores in the bank, we had every option to keep going independently," he said.

“Sometimes, you are drawn towards a path that is more exciting than the one that makes you more money,” he added.

The two companies had been in discussions for several months before upGrad signed a term sheet in March for an all-stock transaction, with Munjal expected to continue as CEO, as per a report by Moneycontrol.

The Competition Commission of India approved the proposed combination in July, it said.

Moneycontrol had earlier reported that upGrad was in talks to acquire Unacademy in a deal valued at $300–400 million.

UpGrad’s Valuation And What It Gains

According to upGrad’s website, the company attained unicorn status in 2021 at a valuation of $1.2 billion, expanded into North America, Europe, the Middle East and Asia Pacific, and diversified into certifications, bootcamps and study-abroad programmes.

The acquisition gives upGrad a presence in online test preparation, adding Unacademy’s businesses across UPSC, JEE, NEET and GATE to its existing higher education, certification, study-abroad and professional upskilling offerings.

The deal follows upGrad’s ₹360 crore internal funding round, in which Screwvala invested ₹300 crore, with Temasek, IFC and 360 One also participating, as per Moneycontrol.