The deal was confirmed on Sunday, with both companies agreeing to a 100% share swap that will combine upGrad’s higher education and upskilling offerings with Unacademy’s K-12 and test preparation business.
Unacademy co-founder and CEO Gaurav Munjal announced the development on X, saying he will continue to lead the company and focus on building online learning products, while neither company has disclosed the valuation, which will be made public only when the transaction is formally closed.
“Neither side will disclose the valuation until closing, when the papers are filed and the transaction becomes public,” Munjal stated, adding that he has long admired how upGrad has quietly but steadily built its presence in upskilling, lifelong learning, and higher education.
“Unacademy helped invent the Modern EdTech Playbook. Along the way we lost some focus and market share, and the sector itself has not seen enough real product innovation in recent years,” he added.
Munjal said that over the past year, Unacademy consolidated company-operated centres with franchise partners, completed an INR 50 crore (£5.2 million) ESOP buyback with nearly 40% participation, built cash reserves of over USD $100m, and highlighted that AI will fundamentally reshape education, making the edtech sector “one of its biggest beneficiaries”.
upGrad co-founder Ronnie Screwvala confirmed the acquisition, stating that the deal includes a break fee, a penalty payable if the transaction does not close, to ensure both parties remain committed.
“We at upGrad have signed a term sheet to acquire Unacademy in an all-stock deal, with Founder and CEO Gaurav Munjal staying on to build Unacademy and focus on what it does best, creating online education products that learners love,” stated Screwvala.
“They disrupted the sector once, and now with AI they plan to do it again. We are already seeing Airlearn gain global traction, and if this closes, upGrad’s integrated model with an expanded focus from K-12 to forever learning will be on a strong trajectory.”
UpGrad has traditionally focused on higher education, upskilling, and early-career programs but lacked K-12 and test preparation, which Unacademy brings at scale, allowing the combined entity to engage learners earlier and retain them across multiple stages.
The acquisition also strengthens upGrad financially, with Unacademy’s $100m cash reserves providing a cushion amid a tighter funding environment. Revenue fell 16% year-on-year to INR 826.3 crore (£68.6m) in FY25 from INR 988 crore (£82m) in FY24, but the company narrowed its EBITDA loss by 38% to INR 305 crore (£25.3m) and reduced its net loss by 31% to INR 436 crore (£36.2m).
Analysts say the deal gives upGrad quick access to Unacademy’s user base and cash reserves, lowering reliance on external fundraising while backing its expansion plans.
We share upGrad’s belief that ‘The Whole is bigger than the Sum of Parts’ and altogether we will impact students, learners and working professionals and build great products from K12 to Forever LearningGaurav Munjal, Unacademy
The deal follows months of earlier talks that collapsed over valuation differences, with Unacademy’s current value estimated at around $500m, down from its 2021 peak of $3.5bn.
India’s edtech sector has faced pressure, with funding falling 56% year-on-year in 2025 and major players like Byju’s and Unacademy reporting losses and scaling back operations, though the sector is projected to grow to over USD $61bn by 2035, with several platforms planning IPOs, including upGrad, which is reportedly targeting a $350-400m IPO in 2027.
The acquisition comes nearly five years after BYJU’S acquired Aakash at the peak of India’s pandemic-era edtech boom, when venture capital flooded the sector and online-only models were widely adopted.
Since 2022, the sector has entered a correction phase, with online-only learning losing momentum, several startups pivoting to hybrid or offline models, and widespread layoffs and closures among smaller players.
For upGrad, this marks the second acquisition in a month, following the purchase of a 90% stake in internship marketplace Internshala via a share swap reportedly valued at an INR 100 crore (£8.3m), reflecting its ambition to create a full-stack learning and career ecosystem.
Experts have suggested that the combined upGrad-Unacademy entity, alongside PhysicsWallah, will dominate the sector as consolidation narrows the market to a few major players.
“We share upGrad’s belief that ‘The Whole is bigger than the Sum of Parts’ and altogether we will impact students, learners and working professionals and build great products from K12 to Forever Learning. The next chapter for education is only beginning,” stated Munjal.
