The EDTech startup Unacademy, which was once one of India’s most valuable companies,will be acquired by competitor upGrad through an all-stock deal, bringing together two leading online learning platforms in the country.
Unacademy CEO Gaurav Munjal announced on X that the companies had signed a term sheet for a 100% share-swap acquisition. The transaction’s valuation will remain undisclosed until the deal closes. The news follows Munjal’s statement three months ago that Unacademy’s valuation had fallen below $500 million — a decline of roughly 85% from its peak $3.5 billion during the pandemic in 2021.
India’s EDTech sector, which boomed during the pandemic, has faced challenges as schools reopened and demand for online learning and test prep platforms slowed. Companies like Unacademy, which expanded during the lockdown, have since reduced costs, scaled back offline ambitions, and refocused on core digital offerings.
UpGrad co-founder Ronnie Screwvala said In a separate post that Munjal will continue to lead Unacademy after the deal closes. He added that the merger would strengthen upGrad’s integrated model, covering K-12 education, upskilling, and lifelong learning. The companies have agreed on a non-disclosed break fee if the deal does not close.
Unacademy helped invent the modern EDTech playbook,
Munjal wrote.
Along the way we lost some focus and market share, and the sector itself has not seen enough real product innovation in recent years.
Founded in 2015, Unacademy became one of India’s top EDTech platforms during the pandemic, when millions of students shifted to online learning. As in-person classes resumed, the company cut costs, laid off staff, and restructured parts of its business.
Unacademy now has over $100 million in cash after consolidating its company-operated offline centers with franchise partners and refocusing on online learning products, according to Munjal. He also noted that the startup completed an employee stock buyback worth ₹500 million (around $5.4 million), with roughly 40% of former employees participating.
According to PitchBook, Unacademy has raised approximately $854.3 million across 13 funding rounds, backed by investors such as SoftBank, Tiger Global, General Atlantic, and Peak XV Partners.
These developments have reshaped the competitive landscape of India’s EDTech sector.
Lately, Munjal has focused on Airlearn, an AI-driven language-learning app that uses a gamified approach similar to Duolingo. This shift has caused tension with some Unacademy investors, who believe the core EDTech business was neglected during a challenging period, according to sources speaking to TechCrunch.
Still, Munjal said Airlearn is gaining traction in markets including the U.S., U.K., Germany, and Canada, adding that artificial intelligence could spark a new wave of innovation in education technology.
Image: Gaurav Munjal LinkedIn Profile
