India’s edtech sector is witnessing another major consolidation move as online learning platform upGrad has signed an agreement to acquire Unacademy through an all-stock deal. The announcement was confirmed by upGrad co-founder Ronnie Screwvala and Unacademy co-founder and CEO Gaurav Munjal in separate posts on X (formerly Twitter).
The acquisition will be structured as a complete share swap, with the final transaction value expected to be disclosed once the deal formally closes and regulatory filings are completed.
Founder Gaurav Munjal to Continue Leading Unacademy
Despite the acquisition, Gaurav Munjal will continue to lead Unacademy as its co-founder and CEO, focusing on developing innovative online education products for learners.
Commenting on the deal, Ronnie Screwvala said upGrad supports Unacademy’s long-term vision and believes the platform has the potential to innovate further in the digital education space.
“We at upGrad have signed a term sheet to acquire Unacademy in an all-stock deal, with the Founder and CEO Gaurav Munjal staying on to build Unacademy and focus on what it does best—creating online education products that learners love,” Screwvala said.
He also noted that Unacademy had previously disrupted the online learning sector and could do so again by integrating artificial intelligence (AI) into its educational offerings.
Read more: Solstice Data Inks ₹52,600 Crore MoU to Set Up AI-Powered Data Centre in Kerala
Earlier Negotiations Faced Valuation Differences
The acquisition discussions between the two companies have been ongoing for some time. Earlier negotiations reportedly stalled due to differences in valuation expectations.
Initial conversations had considered a deal that valued Unacademy at around $300 million, a significant drop from its peak valuation of $3.4 billion during the height of the edtech boom.
The sharp decline reflects broader challenges faced by the sector following the pandemic-era surge in online education demand.
Unacademy Highlights Key Milestones
In his announcement, Munjal highlighted several milestones achieved by Unacademy over the past year.
The company has integrated its company-operated learning centres with franchise partners, expanded operational efficiency, and launched a ₹50 crore ESOP buyback program for employees.
Another major growth driver has been Airlearn, Unacademy’s language-learning platform. According to Munjal, Airlearn has been gaining traction in international markets such as the United States, the United Kingdom, Germany and Canada.
Unacademy also maintains cash reserves exceeding $100 million, providing financial stability as it moves forward with the proposed acquisition.
Strategic Move in a Consolidating Edtech Market
The deal comes at a time when India’s edtech sector is undergoing significant restructuring and consolidation.
Following the pandemic-driven boom, many online learning companies are now focusing on sustainable growth, profitability and product innovation rather than aggressive expansion.
Mergers and acquisitions are increasingly becoming a strategy for companies seeking to strengthen their market position.
upGrad’s Expansion Strategy
upGrad has been actively exploring acquisition opportunities to expand its presence in the digital learning ecosystem.
Earlier reports suggested that the company had also shown interest in acquiring Think & Learn, the parent company of edtech giant Byju’s, which has faced financial difficulties.
That potential bid reportedly involves evaluating multiple assets within the group, including Great Learning, the K-12 learning platform and Aakash Educational Services, a major offline coaching network.
What the Deal Means for the Edtech Industry
If completed, the upGrad–Unacademy merger could reshape the competitive landscape of India’s online education market.
The combination would bring together upGrad’s strengths in higher education and professional upskilling with Unacademy’s strong presence in test preparation and digital learning platforms.
Industry observers believe the deal could signal a new phase of consolidation and innovation in India’s edtech sector, particularly as companies explore AI-driven learning technologies and global expansion opportunities.
Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape. She has written extensively on fintech, AI and emerging startups.