upGrad completes Unacademy acquisition at just over $200 million, marking steep valuation reset

Edtech firm upGrad sealed its acquisition of Unacademy for a deal valued at just over $200 million, representing a significant valuation reset for India's top edtech startup. This acquisition places Unacademy at around 90% less than its peak valuation of $3.44 billion in 2021, when pandemic-era surges in online education inflamed investor expectations.

The transaction followed months of negotiation, with upGrad terminating an earlier deal in January due to valuation differences. The two parties resumed talks in March and signed a term sheet for a 100% share swap, with Unacademy's co-founder and CEO Gaurav Munjal staying on after the deal. The Competition Commission of India gave the green light to the acquisition in July.

The deal comes amidst Unacademy's business restructuring, with revenue dropping 16% to ₹826.2 crore in FY25 and net loss narrowing to ₹435.4 crore from ₹631 crore the previous year. Unacademy also executed a ₹50 crore ESOP buyback in February. Co-founder and CEO Munjal expressed pride in the team's achievements despite the sharp valuation decline.

The relationship between upGrad and Unacademy began before the deal, as noted by upGrad's co-founder Ronnie Screwvala, who praised Munjal's transparency about Unacademy's situation. Established in 2015 by Munjal, Roman Saini and Hemesh Singh, Unacademy evolved from a YouTube channel into a leading test-preparation platform. With this acquisition, upGrad gains a stronger position in online test preparation, complementing its focus on higher education, professional upskilling and study abroad opportunities.