upGrad to acquire Unacademy in an all-stock deal

Edtech company upGrad has entered into an all-stock agreement to acquire competitor Unacademy, according to separate announcements made by founders Ronnie Screwvala and Gaurav Munjal on X.

The proposed acquisition will be carried out through a complete share swap, with final transaction value to be revealed after the deal closes and official filings are in place, Munjal stated.

Screwvala emphasised upGrad’s commitment to Unacademy’s mission, confirming that Founder and CEO Munjal will continue to lead Unacademy and drive its pursuit of innovative online education products beloved by learners.

“We at upGrad have signed a term sheet to acquire Unacademy in an all-stock deal, with the Founder and CEO Gaurav Munjal staying on to build Unacademy and focus on what it does best, creating online education products that learners love. We have also agreed to a break fee were we not close. They disrupted the sector once, and now with AI they plan to do it again. We are already seeing Airlearn gain global traction,” said Screwvala.

upGrad had been considering an acquisition of Unacademy for an extended period, but earlier discussions fell through due to differing valuation views. Initial negotiations centred on an all-stock deal that would have valued Unacademy at approximately $300 million—a dramatic reduction from its peak valuation of $3.4 billion, representing a decline of over 90%.

In his recent X post, Munjal outlined a series of significant milestones for Unacademy over the past year, such as the integration of company-operated centres with franchise partners, a ₹50 crore ESOP buyback initiative, and the rapid growth of the language-learning platform Airlearn, which is now making inroads in markets like the US, UK, Germany, and Canada.

He further revealed that Unacademy maintains cash reserves exceeding $100 million.

Should the deal proceed, Munjal affirmed his intention to remain as Unacademy’s co-founder and CEO, with a continued focus on developing innovative online education solutions for learners in India and worldwide.

This acquisition comes at a time when India’s edtech landscape is witnessing significant consolidation. Following the post-pandemic demand slowdown, companies are sharpening their focus on profitability and product-driven growth.

Previously, ET reported that upGrad had expressed interest in acquiring Think & Learn, the insolvent parent company of edtech giant Byju's. This bid involves a comprehensive assessment of all the group’s assets, including the K-12 platform, Great Learning and coaching centre operator Aakash Educational Services.