Unacademyonce one of India’s most valuable tech startups, is set to be acquired by a rival upGrad in an all-stock deal that would bring together two major online learning platforms in the country.
On Sunday, Unacademy co-founder and CEO Gaurav Munjal he said in a post on X that the companies had signed a term sheet for upGrad to acquire Unacademy in a 100% share swap deal, adding that the valuation would not be disclosed until the transaction closes. The announcement comes more than three months after Munjal said Unacademy’s valuation had fallen below $500 million — down about 85% from its pandemic-era peak of $3.5 billion in 2021.
India’s once-burgeoning edtech sector has struggled since the easing of pandemic-era lockdowns as students returned to classrooms and demand for online test preparation and learning platforms waned. Companies including Unacademy, which expanded aggressively during the pandemic, have since cut costs, scaled back offline ambitions and refocused on core digital products.
In one separate postupGrad co-founder Ronnie Screwvala said Munjal will continue to lead Unacademy after the acquisition, adding that the combination will strengthen upGrad’s integrated model spanning K-12 education, upskilling and lifelong learning. The companies have agreed to an undisclosed break fee if the deal doesn’t close, Screwvala said.
“Unacademy helped invent the modern edtech book,” Munjal wrote. “We’ve lost some focus and market share along the way, and the industry itself hasn’t seen enough real product innovation in recent years.”
Founded in 2015, Unacademy emerged as one of the most prominent tech startups in India during the pandemic, when lockdowns drove millions of students to online learning platforms. But as demand waned after classes opened, the company cut costs, laid off employees and restructured parts of its business.
Munjal said Unacademy currently holds more than $100 million in cash after spending the past year consolidating company-operated offline centers with franchise partners and refocusing on its core online learning products. The company also completed an employee share buyback worth ₹500 million (about $5.40 million), with about 40 percent of former employees participating, he said.
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Unacademy has raised about $854.3 million in 13 funding rounds, according to PitchBook, and includes among its backers investors such as SoftBank, Tiger Global, General Atlantic and Peak XV Partners.
The upheaval has reshaped the competitive landscape of India’s edtech industry. Byju’s, once the country’s most valuable startup, saw its valuation drop to virtually zero and entered insolvency proceedings in September 2024.
Meanwhile, rival Physics Wallah, once considered an outsider in the industry, became profitable and continued to expand. The company made a strong debut in the public markets late last year.
In recent months, Munjal has devoted increasing attention to Airlearn, an AI-first language learning app that mimics the gamified approach popularized by Duolingo. The change has created friction with some Unacademy investors, who felt the core edtech business was sidelined during a difficult phase, people familiar with the matter told TechCrunch.
But Munjal said Airlearn is gaining traction in markets including the United States, the United Kingdom, Germany and Canada, and argued that artificial intelligence could unlock a new wave of innovation in educational technology.
