The Unacademy CEO says the deal value will remain confidential until the acquisition is completed.
Edtech company upGrad has signed a term sheet to acquire Unacademy through an all-stock transaction.
The proposed deal will be structured as a 100 percent share swap, according to announcements made by the companies’ founders.
Valuation details will be disclosed only after the transaction closes and regulatory filings are completed.
Leadership to Remain in Place
Under the proposed arrangement, Unacademy co-founder Gaurav Munjal will continue as CEO, focusing on building the company’s online education products.
UpGrad co-founder Ronnie Screwvala said the acquisition could combine Unacademy’s product strengths with UpGrad’s broader learning ecosystem.
The combined platform would serve learners across segments ranging from school education and test preparation to professional upskilling.
Talks Follow Earlier Failed Negotiations
The agreement follows earlier acquisition discussions that broke down earlier this year due to disagreements over valuation.
Munjal previously indicated that Unacademy’s valuation had dropped below $500 million, far below its $3.5 billion valuation in 2021 during the edtech funding boom.
Restructuring at Unacademy
Over the past year, Unacademy has restructured parts of its business to focus on core online learning products.
The company consolidated company-operated centers with franchise partners and implemented cost-cutting measures.
Unacademy also completed a ₹50 crore ESOP buyback programme, with nearly 40 percent of former employees participating.
Financial Performance
The company reported revenue of ₹826.3 crore for FY2025, representing a 16 percent decline from the previous year.
However, Unacademy significantly reduced its losses.
EBITDA losses declined by 38 percent to ₹305 crore, while net losses fell 31 percent to ₹436 crore.
Consolidation in EdTech
Both upGrad and Unacademy have expanded through acquisitions in recent years as competition intensified in the online learning market.
Industry observers see the proposed deal as part of a broader consolidation trend in India’s edtech sector following the pandemic-era expansion.
If completed, the acquisition would combine two major digital learning platforms and could reshape the competitive landscape in India’s online education market.
Source: ISN
