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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