Edtech major Unacademy has completed its acquisition by UpGrad in a deal valued at just over $200 million, marking a sharp decline from its peak valuation of around $3.4 billion in 2021. The transaction reflects a nearly 94% drop from Unacademy’s highest valuation, according to Entrackr.
Unacademy Co-founder and CEO Gaurav Munjal confirmed the completion of the UpGrad-Unacademy deal in a post, acknowledging that the company raised capital at its peak but is now being acquired at a much lower valuation.
Entrackr had earlier reported that UpGrad was expected to close the acquisition at around ₹1,955 crore. The transaction has been structured as an all-stock deal, and Munjal is expected to continue leading Unacademy after the combination.
Key Points
- UpGrad has completed the acquisition of Unacademy for just over $200 million.
- The deal values Unacademy at about 94% lower than its 2021 peak valuation of around $3.4 billion.
- The transaction was reportedly structured as an all-stock deal valued at around ₹1,955 crore.
- Gaurav Munjal is expected to continue leading Unacademy after the deal.
- UpGrad gains access to Unacademy’s test-preparation presence across UPSC, JEE, NEET and GATE.
- Unacademy reported a topline of around ₹400 crore and around ₹900 crore in the bank.
Unacademy Says Deal Was Not Driven by a Cash Crunch
Munjal said that Unacademy’s acquisition by UpGrad was not driven by a funding shortage or immediate financial pressure. He stated that Unacademy currently has a topline of around ₹400 crore, while most of its businesses are either profitable or close to profitability.
The company also has around ₹900 crore in the bank, according to Munjal. He said Unacademy had the option to continue operating independently but chose to join UpGrad following discussions with UpGrad Co-founder Ronnie Screwvala.
Munjal indicated that both companies believe the merger can create a stronger and more comprehensive education ecosystem in India.
UpGrad Gains Entry Into Online Test Preparation
The UpGrad acquisition of Unacademy gives UpGrad a direct presence in India’s online test-preparation market. Unacademy operates across several competitive examination categories, including UPSC, JEE, NEET and GATE.
The deal also brings Unacademy’s educator network and other businesses under UpGrad’s wider education portfolio. UpGrad currently operates across higher education, professional upskilling and study-abroad services.
With this combination, UpGrad can expand its reach across different stages of a learner’s journey, from competitive exam preparation to professional learning and international education opportunities.
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Unacademy Highlights Educator and Employee Impact
Despite the lower exit valuation, Munjal highlighted Unacademy’s wider contribution to India’s digital learning ecosystem. He said that educators on the platform have crossed 10 billion views on YouTube.
He also noted that Unacademy conducted four ESOP buybacks, creating liquidity opportunities for employees. Munjal said he remains confident that shareholders could create significant value through the combined business in the future.
The transaction signals another major consolidation move in India’s evolving edtech sector, where companies are increasingly focusing on sustainable growth, profitability and stronger business integration.
