The acquisition brings Unacademy under upGrad as co-founder Gaurav Munjal reflects on the challenges behind the company’s journey.
upGrad has completed its acquisition of Unacademy in an all-stock transaction valued at about $206 million, marking one of the biggest consolidation moves in India’s edtech sector in recent years.
The deal values Unacademy at roughly ₹1,955 crore, a sharp decline from the company’s peak valuation of $3.44 billion in 2021. That represents a fall of about 94% from its pandemic-era high, reflecting the broader correction in India’s consumer edtech market since the online-learning boom.
Unacademy co-founder and CEO Gaurav Munjal confirmed the completion of the transaction on September 1. Reflecting on the valuation reset, he acknowledged the reality of the deal without attempting to soften it.
“We raised at a peak, but sold at a fraction of that,” Munjal said.
Despite the acquisition, Munjal will continue as Unacademy’s CEO, while the businesses under the Unacademy group will become part of the wider upGrad ecosystem.
A 100% Share-Swap Transaction
The acquisition has been structured as a 100% share swap, meaning Unacademy investors receive shares in upGrad rather than a conventional cash payout.
The transaction covers Unacademy parent company Sorting Hat Technologies and its operating businesses. The Competition Commission of India approved the combination on July 7, clearing the way for the transaction to close.
UpGrad co-founder and chairperson Ronnie Screwvala told TechCrunch that the final transaction value was approximately $206 million. Unacademy’s shareholders will receive equity in the combined business, while certain angel investors were cashed out at closing.
The acquisition brings several businesses into the upGrad fold, including Unacademy’s core test-preparation platform, PrepLadder, Graphy and AirLearn. The brands are expected to continue operating under their existing identities.
Why upGrad Wanted Unacademy
The acquisition gives upGrad an immediate presence in the online competitive-exam preparation market, adding a business that serves students preparing for examinations such as UPSC, JEE, NEET and GATE.
UpGrad has traditionally focused on higher education, professional upskilling, online degrees and overseas education. Unacademy adds a younger learner base and a large test-preparation business to that portfolio.
The combination could allow upGrad to serve students across more stages of their education journey, from competitive examinations and undergraduate preparation to professional education and career-focused programmes.
The transaction also gives the combined group access to Unacademy’s educator network and digital audience. Munjal said educators associated with the platform have generated more than 10 billion views on YouTube.
Unacademy Could Have Continued Independently
Munjal has stressed that the acquisition was not the result of an immediate cash crisis.
He said Unacademy had around ₹900 crore in cash and a topline of approximately ₹400 crore, with most of its businesses either profitable or close to profitability. He also said the company had the option of continuing independently.
“We had every option to keep going independently. Nobody was forcing this,” Munjal wrote.
Instead, Munjal said discussions with Screwvala convinced him that combining the businesses offered a more ambitious path for the wider education ecosystem.
That distinction is important because the acquisition comes at a drastically different valuation from the one at which Unacademy raised capital during the industry’s boom years.
From $3.44 Billion to $206 Million
Unacademy’s peak valuation of around $3.44 billion came in 2021, when investors were aggressively backing online education companies as the pandemic drove students towards digital learning.
The market has changed considerably since then. As physical learning resumed, growth rates slowed, capital became more expensive and investors shifted their focus towards profitability, operating efficiency and sustainable business models.
Unacademy was not alone in facing the correction. India’s edtech sector has since seen layoffs, cost-cutting, business exits and acquisitions as companies reassessed the economics of pandemic-era expansion.
The latest transaction puts a sharp number on that adjustment. A company once valued at $3.44 billion has now been acquired at a little over $200 million.
A Long Road to the Deal
The acquisition was not agreed in a single round of negotiations.
UpGrad and Unacademy began discussions in November 2025, but talks broke down in January 2026 after the two sides could not agree on valuation. Negotiations resumed in March, when the companies announced a term sheet for a 100% share-swap transaction.
The CCI subsequently approved the combination in July, allowing the companies to complete the transaction in September.
The history shows how much the valuation question mattered to both sides, particularly given the gap between Unacademy’s previous funding valuations and the price ultimately accepted.
Munjal Reflects on Unacademy’s Journey
For Munjal, the transaction also marks the end of one chapter of a long entrepreneurial journey.
In reflecting on Unacademy’s story, he recalled periods of intense pressure, including staying awake through the night to make videos when viewership fell and travelling to China to meet an investor who ultimately did not attend the meeting.
He described the sleepless nights, investor rejections and constant firefighting as part of the experience of building the company.
Munjal also highlighted four employee stock-option buybacks carried out during Unacademy’s journey, saying they created value for employees. The company recently completed another ESOP exercise worth ₹45 crore involving around 1,000 of its former employees.
What the Deal Means for India’s Edtech Market
The upGrad-Unacademy transaction is more than a change in ownership. It is another sign that India’s edtech sector has entered a consolidation phase after years of rapid expansion.
For upGrad, the acquisition expands its reach into test preparation and gives it access to a broader student audience. For Unacademy, the deal provides a path to continue operating with the backing of a larger education group while Munjal remains at the helm.
The headline number, however, tells another part of the story. Unacademy’s journey from a $3.44 billion valuation to a roughly $206 million acquisition shows just how dramatically investor expectations have changed since India’s pandemic-era edtech boom.
As the two companies move forward together, the focus will now shift from the valuation Unacademy once commanded to what the combined business can build from here.
