Tag: Unacademy

India’s edtech sector is set for a significant shake-up as upGrad has agreed to acquire rival platform Unacademy through a 100% share-swap transaction. The proposed deal reflects a broader consolidation trend within the industry as companies focus on sustainable growth and new technologies such as artificial intelligence.

Under the agreement, Unacademy will continue operating with its existing leadership team. Co-founder Gaurav Munjal is expected to remain CEO, overseeing the company’s operations and future product development. The combined entity aims to strengthen its presence across multiple education segments, including competitive exam preparation, professional courses and upskilling programs.

The financial terms of the transaction have not yet been disclosed. Company executives said the valuation and final details will become public after the deal is formally completed and required regulatory processes are finished.

The acquisition comes at a time when India’s once-booming edtech sector is undergoing major changes following the rapid expansion witnessed during the COVID-19 pandemic. Many companies are now prioritising profitability, operational efficiency and strategic partnerships to remain competitive in a more mature market.

Both upGrad and Unacademy are increasingly investing in artificial intelligence to improve their learning platforms. AI-powered tools are being developed to personalise courses, recommend learning paths for students and assist educators in creating interactive digital content. The companies believe these technologies could significantly enhance engagement and learning outcomes.

upGrad has been expanding its offerings in career-oriented education and professional upskilling, while Unacademy has built a strong presence in test preparation for competitive exams. By combining their resources, technology and learner communities, the two firms expect to accelerate innovation and broaden their reach across different learner groups.

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UpGrad, India’s online learning and upskilling platform co‑founded by Ronnie Screwvala, has pulled out of a proposed acquisition of rival Unacademy, citing disagreements over valuation and concerns about business performance. The move comes after several months of negotiations failed to produce common ground between the two companies.

The deal had aimed to value Unacademy — backed by SoftBank, Temasek, and Tiger Global — at around USD 290–300 million. This is a sharp drop from its peak valuation of USD 3.4 billion in 2021, reflecting the significant correction in India’s edtech sector following the post-pandemic boom. Sources familiar with the negotiations said UpGrad’s valuation expectations were much higher, and the gap could not be bridged. Ronnie Screwvala confirmed the withdrawal, saying both sides “could not arrive at a mutually agreeable valuation.” Unacademy did not comment.

Beyond valuation, UpGrad reportedly had concerns over Unacademy’s business performance. The startup has faced stagnant revenue, ongoing losses, and challenges in scaling offline coaching programs. While its losses narrowed slightly in the last fiscal year, growth remained limited, raising questions about long-term viability.

The cancellation highlights wider challenges in India’s online education market, where slowing post-pandemic growth, intense competition, and cautious investors have led to multiple valuation corrections. Unacademy has previously seen potential deals fall through for similar reasons, showing the difficulty of matching expectations in the current market.

For UpGrad, stepping back allows the company to retain financial flexibility and avoid overpaying. Both companies will now continue independently, focusing on growth and adaptation to the changing industry landscape.

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