upGrad completes Unacademy acquisition for just over $200 million

Ronnie Screwvala-led upGrad has completed its acquisition of edtech company Unacademy for just over $200 million, marking a sharp reset from the latter’s peak valuation of $3.44 billion.

Unacademy co-founder and CEO Gaurav Munjal confirmed the completion of the transaction in a post on X on September 1. He said the deal brings to a close months of on-and-off negotiations between the two companies.

“We raised at a peak, but sold at a fraction of that,” Munjal said, acknowledging the steep decline in Unacademy’s valuation since its pandemic-era peak.

The acquisition gives upGrad an entry into the online test-preparation business, adding Unacademy’s offerings across UPSC, JEE, NEET and GATE to its existing portfolio of higher education, professional upskilling, study abroad and certification businesses.

Unacademy had reached unicorn status six years ago and expanded rapidly during the pandemic-led edtech boom. Its peak valuation stood at $3.44 billion.

The company subsequently scaled back its operations and shifted its focus towards building a more sustainable business.

According to a Moneycontrol report, the acquisition was first reported in November 2025, when upGrad was in talks to acquire Unacademy in a deal valued at between $300 million and $400 million. The negotiations went through several rounds and were put on hold at one point because of differences over valuation before eventually resuming.

In March, the companies signed a term sheet for an all-stock transaction, with Munjal set to continue as Unacademy’s CEO. The Competition Commission of India approved the proposed combination in July, clearing the regulatory hurdle for the deal.

The acquisition comes at a point when Unacademy says its financial position had improved considerably from the difficult period following the edtech boom.

Munjal said the company now has a topline of around Rs 400 crore, with most of its businesses profitable or near-profitable. He also said Unacademy had around Rs 900 crore in the bank.

That, according to Munjal, meant the company could have continued independently rather than selling because it needed capital.

“With a topline of around 400 crores, most businesses profitable or near-profitable, and 900 crores in the bank, we had every option to keep going independently,” he said.

He said the decision to combine with upGrad was ultimately driven by the potential of the larger education ecosystem rather than financial pressure.

“Sometimes, you are drawn towards a path that is more exciting than the one that makes you more money,” Munjal said.

The acquisition expands upGrad beyond higher education, certification, study abroad and professional upskilling into online test preparation.

Unacademy’s core test-preparation business includes courses for competitive examinations such as UPSC, JEE, NEET and GATE.

In its filing with the Competition Commission of India, upGrad had said the transaction would allow it to enter the online test-preparation segment, where it did not previously have a presence.

The deal therefore brings together two businesses with different but complementary positions in India’s education market, with Unacademy adding its test-preparation operations to upGrad’s existing education portfolio.

The acquisition also follows a Rs 360-crore internal funding round at upGrad.

Ronnie Screwvala invested Rs 300 crore in that round, while Temasek, IFC and 360 One also participated, according to the report.

For Munjal, the completion of the acquisition marks the end of a six-year journey that began when Unacademy became a unicorn.

In his post, he said he was proud of what the team built despite the difference between the company’s fundraising valuation and its eventual acquisition value.

He pointed to Unacademy’s free platform and its role in creating a generation of celebrity educators. According to Munjal, videos by educators on the platform crossed 10 billion views.

He also highlighted Airlearn, Unacademy’s language-learning product, saying it became one of the world’s top three most-downloaded language-learning apps in less than two years.

Munjal said Unacademy had also completed four ESOP buybacks, which he described as creating value for employees even as founders and investors did not create comparable value for themselves.

He said he now looked forward to the next phase under the upGrad umbrella and was confident that shareholders would create significant value from the merger.

– Ends