India’s Unacademy sells to rival upGrad for $206M, about 94% less than its peak valuation

India's edtech startup Unacademy has been acquired by rival upGrad in a deal valued at over $200 million, significantly lower than its peak valuation in 2021. The all-stock transaction values Unacademy at ₹19.55 billion, while upGrad's co-founder and chairperson Ronnie Screwvala announced the sale to TechCrunch. Unacademy shareholders will receive upGrad shares, while angel investors were cashed out in the closing transaction.

Unacademy co-founder and CEO Gaurav Munjal stated that the deal had closed nearly six months after its initial announcement in March. Despite having ₹9 billion in the bank and annual revenue of roughly ₹4 billion, Unacademy was acquired due to a shift in strategy to expand into more areas of education and join upGrad's presence in offline education.

Airlearn, Unacademy's language-learning app, remains under upGrad. Munjal will continue as Unacademy's CEO, with a focus on its online operations and Airlearn. The sale represents a reversal for India's edtech industry after rapid growth during the pandemic.