upGrad Completes $200 Mn Acquisition of Unacademy in Major EdTech Shake-Up

Ronnie Screwvala-led upGrad has completed its acquisition of Unacademy for just over $200 million, marking a dramatic reset for one of India’s most recognisable edtech startups.

Unacademy co-founder and CEO Gaurav Munjal confirmed the completion of the deal on September 1, saying the company had officially been acquired by upGrad. His remarks also highlighted the extraordinary change in Unacademy’s fortunes: the startup once commanded a valuation of $3.44 billion, but has now been sold for only a fraction of that figure.

The transaction brings together two major Indian education companies at a time when the edtech industry is moving away from the aggressive expansion that defined the pandemic years.

Credits: Entrackr

From $3.44 Billion Unicorn to $200 Million Deal

Unacademy became a unicorn roughly six years ago and quickly expanded as demand for online education surged during the COVID-19 pandemic.

The company attracted significant investor interest and reached a peak valuation of $3.44 billion. However, as students returned to physical classrooms and the edtech boom cooled, Unacademy began scaling back operations and focusing on profitability and sustainability.

The acquisition talks with upGrad reflected that changing environment.

Moneycontrol first reported in November 2025 that the companies were discussing a potential deal worth between $300 million and $400 million. Negotiations continued for several months, with valuation differences reportedly causing the talks to stall before discussions resumed.

By March, upGrad had signed a term sheet to acquire Unacademy through an all-stock transaction, with Munjal expected to remain as CEO.

The Competition Commission of India subsequently approved the proposed combination in July, removing a major regulatory hurdle.

Unacademy Says It Could Have Continued Alone

Despite the steep decline from its peak valuation, Munjal indicated that Unacademy was not being forced into a sale because of financial difficulties.

He said the company currently has a topline of around ₹400 crore, while most of its businesses are either profitable or close to profitability. Unacademy also has approximately ₹900 crore in the bank, according to Munjal.

That financial position, he suggested, meant the company had the option of continuing independently.

The decision to sell, therefore, was presented less as a rescue and more as a strategic choice.

Munjal said the company ultimately chose a path that he found more exciting, even if it might not necessarily have produced the most money.

That makes the acquisition particularly notable: Unacademy was not simply selling because it had run out of cash. Instead, its leadership appears to have decided that becoming part of a larger education platform offered better long-term opportunities.

What Does upGrad Get?

For upGrad, the acquisition fills an important gap in its education portfolio.

Unacademy brings with it a significant presence in online test preparation, covering major competitive examinations such as UPSC, JEE, NEET and GATE.

upGrad already operates across higher education, professional upskilling, certifications and study-abroad services. Adding Unacademy gives it a direct entry into the online test-preparation market, where it previously had little or no presence.

The Competition Commission filing had specifically identified entry into online test preparation as one of the benefits of the combination.

The deal could therefore allow upGrad to build a much broader education ecosystem, covering students from competitive-exam preparation through higher education and professional careers.

Credits: The Economic Times

A New Chapter for India’s EdTech Industry

The acquisition also reflects how dramatically India’s edtech landscape has changed since the pandemic.

Companies that once raised money at billion-dollar valuations are now being forced to prioritise sustainable growth, profitability and efficient operations rather than expansion at any cost.

The transaction follows a ₹360 crore internal funding round at upGrad, in which Screwvala invested ₹300 crore, with Temasek, IFC and 360 One also participating.

For Unacademy, the deal closes one chapter of its remarkable startup journey. For upGrad, it opens another—with access to a large test-preparation business and an established brand that became synonymous with India’s online education boom.

The bigger question now is whether the combination can turn two very different journeys into a stronger, more sustainable education business.