May 2026 | Edtech M&A News | India – upGrad is reportedly in advanced discussions to acquire Unacademy in an all-stock transaction valued at approximately ₹2,055 crore ($218 million).
The proposed deal, expected to be one of the largest mergers in India’s edtech sector, reflects a broader shift as companies recalibrate strategies following the post-pandemic slowdown.
Deal Highlights and Valuation Reset
The acquisition values Unacademy at over 90% below its peak valuation of $3.4 billion in 2021, marking a significant correction in the edtech market.
Key factors influencing the deal include:
- Strong cash reserves of ₹900–950 crore on Unacademy’s balance sheet
- Strategic consolidation in a maturing edtech ecosystem
- Increased focus on profitability and sustainable growth
upGrad, led by Ronnie Screwvala, is expected to seek regulatory approval from the Competition Commission of India (CCI).
Strategic Rationale Behind the Acquisition
The potential merger aligns with upGrad’s strategy to:
- Expand its learner base across online and offline segments
- Strengthen its position in India’s competitive edtech market
- Leverage Unacademy’s content ecosystem and user base
For Unacademy, the deal offers:
- Financial stability
- Access to a broader platform
- Opportunity to scale through consolidation
Investor Overlap and Funding Background
Temasek, a key investor, holds stakes in both companies:
- ~22% in upGrad
- ~5% in Unacademy
Funding comparison:
- Unacademy has raised $880 million, including a $440 million round in 2021
- upGrad has raised $330 million and was last valued at $1.9 billion
Additionally, upGrad is planning to raise around ₹375 crore from Temasek and its founder to support growth and strategic initiatives.
Edtech Industry Shift After Pandemic Boom
The proposed acquisition highlights a broader transformation in India’s edtech sector.
During the pandemic, rapid digital adoption drove aggressive growth and high valuations. However, the market has since faced:
- Slower user growth
- Rising customer acquisition costs
- Profitability pressures
The situation has also been influenced by challenges faced by major players like Byju’s, once valued at $22 billion.
About Unacademy
Founded around a decade ago by Gaurav Munjal, Hemesh Singh, and Roman Saini, Unacademy began as a YouTube learning channel.
It later evolved into a full-scale edtech platform offering:
- Online courses
- Competitive exam preparation
- Offline learning centers
upGrad’s Recent Expansion Moves
Alongside this potential acquisition, upGrad has also acquired Internshala in an all-stock deal valued at approximately ₹80 crore, strengthening its presence in career and skill development.
Conclusion
The planned acquisition of Unacademy by upGrad signals a new phase for India’s edtech industry—one defined by consolidation, capital efficiency, and sustainable growth.
As the sector moves beyond the pandemic-driven boom, strategic mergers like this are expected to reshape the competitive landscape.
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.