UpGrad, an online skilling platform, is set to acquire edtech company Unacademy in an all-stock deal after months of negotiations. The Bengaluru-based firm is expected to be valued at around ₹2,055 crore (about $218 million), according to people familiar with the matter.
This valuation marks a steep drop of over 90% from Unacademy’s peak valuation of $3.4 billion during the 2021 funding boom. Once a YouTube-based learning channel, Unacademy has since expanded into a full edtech platform and is currently estimated to hold ₹900–950 crore in cash, which is seen as a key factor in the deal.
The acquisition, led by UpGrad founder Ronnie Screwvala, is expected to receive Competition Commission of India (CCI) approval soon, with formal agreements likely to be signed shortly. Alongside this deal, UpGrad is also in talks to raise about ₹375 crore from existing investors, including Temasek and Screwvala himself. Temasek already holds stakes in both companies.
Unacademy has raised nearly $880 million in funding over the years, while UpGrad has raised around $330 million and was last valued at $1.9 billion. The deal is considered one of the biggest consolidation moves in India’s edtech sector, which has slowed significantly after the pandemic-era boom.
The broader industry has been under pressure following the collapse of major players like Byju’s, and many firms are now shifting strategies. Unacademy itself has moved away from fully online operations, closing company-run offline centres and focusing more on franchise-based models.
The company, co-founded by Gaurav Munjal, Hemesh Singh, and Roman Saini, is projected to earn around ₹400 crore in revenue in 2026, reflecting a decline in recent years. For FY25, it reported ₹702 crore in revenue, down 16% year-on-year.
Despite the challenges, Unacademy CEO Gaurav Munjal is expected to continue leading the company after the acquisition is completed. UpGrad, meanwhile, plans to use its strengthened cash position to expand in enterprise learning, AI-driven education tools, and global talent mobility.
