The deal was validated on Sunday, with both companies agreeing to a 100% share swap that will combine upGrad’s college and upskilling offerings with Unacademy’s K-12 and test preparation company.
Unacademy co-founder and CEO Gaurav Munjal revealed the advancement on X, saying he will continue to lead the company and concentrate on structure online knowing products, while neither company has actually divulged the assessment, which will be revealed only when the transaction is formally closed.
“Neither side will divulge the appraisal until closing, when the documents are filed and the transaction becomes public,” Munjal stated, including that he has long appreciated how upGrad has silently however gradually developed its existence in upskilling, long-lasting knowing, and college.
“Unacademy helped invent the Modern EdTech Playbook. Along the way we lost some focus and market share, and the sector itself has actually not seen sufficient genuine product innovation in recent years,” he included.
Munjal stated that over the previous year, Unacademy consolidated company-operated centres with franchise partners, finished an INR 50 crore (₤ 5.2 million) ESOP buyback with almost 40% involvement, developed cash reserves of over USD $100m, and highlighted that AI will fundamentally reshape education, making the edtech sector “one of its biggest recipients”.
upGrad co-founder Ronnie Screwvala verified the acquisition, specifying that the offer consists of a break cost, a penalty payable if the deal does not close, to make sure both parties stay committed.
“We at upGrad have actually signed a term sheet to obtain Unacademy in an all-stock offer, with Creator and CEO Gaurav Munjal staying on to develop Unacademy and concentrate on what it does best, creating online education products that learners love,” specified Screwvala.
“They interrupted the sector when, and now with AI they plan to do it again. We are currently seeing Airlearn gain global traction, and if this closes, upGrad’s incorporated design with a broadened focus from K-12 to forever discovering will be on a strong trajectory.”
UpGrad has traditionally focused on higher education, upskilling, and early-career programs but lacked K-12 and test preparation, which Unacademy brings at scale, allowing the combined entity to engage learners earlier and keep them across multiple stages.
The acquisition likewise strengthens upGrad economically, with Unacademy’s $100m money reserves providing a cushion amid a tighter financing environment. Revenue fell 16% year-on-year to INR 826.3 crore (₤ 68.6 m) in FY25 from INR 988 crore (₤ 82m) in FY24, however the company narrowed its EBITDA loss by 38% to INR 305 crore (₤ 25.3 m) and minimized its bottom line by 31% to INR 436 crore (₤ 36.2 m).
Experts say the offer gives upGrad quick access to Unacademy’s user base and money reserves, reducing dependence on external fundraising while backing its expansion strategies.
We share upGrad’s belief that’ The Whole is larger than the Amount of Parts ‘and entirely we will affect students, learners and working specialists and build fantastic products from K12 to Forever Knowing
Gaurav Munjal, Unacademy
The offer follows months of earlier talks that collapsed over appraisal differences, with Unacademy’s current value approximated at around $500m, below its 2021 peak of $3.5 bn.
India’s edtech sector has faced pressure, with funding falling 56% year-on-year in 2025 and significant gamers like Byju’s and Unacademy reporting losses and downsizing operations, though the sector is projected to grow to over USD $61bn by 2035, with a number of platforms planning IPOs, consisting of upGrad, which is supposedly targeting a $350-400m IPO in 2027.
The acquisition comes nearly five years after BYJU’S obtained Aakash at the peak of India’s pandemic-era edtech boom, when venture capital flooded the sector and online-only models were commonly embraced.
Considering that 2022, the sector has actually entered a correction phase, with online-only learning losing momentum, numerous startups pivoting to hybrid or offline models, and widespread layoffs and closures amongst smaller sized gamers.
For upGrad, this marks the 2nd acquisition in a month, following the purchase of a 90% stake in internship market Internshala by means of a share swap supposedly valued at an INR 100 crore (₤ 8.3 m), showing its ambition to develop a full-stack knowing and career ecosystem.
Experts have recommended that the combined upGrad-Unacademy entity, along with PhysicsWallah, will dominate the sector as debt consolidation narrows the market to a couple of significant gamers.
“We share upGrad’s belief that ‘The entire is larger than the Amount of Parts’ and entirely we will impact students, learners and working experts and build excellent products from K12 to Forever Learning. The next chapter for education is just starting,” mentioned Munjal.
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