Unacademy, once one of India’s most valuable edtech startups, is set to be acquired by rival upGrad in an all-stock deal.
Unacademy co-founder and CEO Gaurav Munjal announced the deal on X, stating that the companies had signed a term sheet for upGrad to acquire Unacademy in a 100% share-swap deal. The valuation will not be disclosed until the transaction closes.
The acquisition comes after Unacademy’s valuation dropped below $500 million, down roughly 85% from its pandemic-era peak of $3.5 billion in 2021. Unacademy has raised about $854.3 million across 13 funding rounds.
The Funding Round
Unacademy’s previous funding history includes investments from SoftBank, Tiger Global, General Atlantic, and Peak XV Partners. The company currently holds more than $100 million in cash reserves.
UpGrad co-founder Ronnie Screwvala said Munjal will continue leading Unacademy after the acquisition, adding that the combination would strengthen upGrad’s integrated model spanning K-12 education, upskilling, and lifelong learning.
Market Context
India’s edtech sector has struggled since pandemic-era lockdowns eased, with companies including Unacademy cutting costs and scaling back offline ambitions. Byju’s, once the country’s most valuable startup, has seen its valuation written down to effectively zero and entered insolvency proceedings.
Rival Physics Wallah has turned profitable and continued expanding, making a strong debut in the public markets late last year. Unacademy has also devoted attention to Airlearn, an AI-first language-learning app.
Company Background
Unacademy was founded in 2015 and emerged as one of India’s most prominent edtech startups during the pandemic. The company has since reduced costs, laid off employees, and restructured parts of its business.
Munjal said Unacademy is gaining traction in markets including the United States, the United Kingdom, Germany, and Canada, and argued that artificial intelligence could unlock a new wave of innovation in education technology.
