The deal was confirmed on Sunday, with both business consenting to a 100% share swap that will combine upGrad’s college and upskilling offerings with Unacademy’s K-12 and test preparation service.
Unacademy co-founder and CEO Gaurav Munjal revealed the advancement on X, saying he will continue to lead the company and focus on structure online knowing items, while neither business has actually divulged the evaluation, which will be revealed just when the transaction is officially closed.
“Neither side will disclose the assessment up until closing, when the documents are submitted and the transaction becomes public,” Munjal mentioned, adding that he has actually long admired how upGrad has silently but steadily developed its existence in upskilling, lifelong learning, and college.
“Unacademy helped develop the Modern EdTech Playbook. Along the way we lost some focus and market share, and the sector itself has actually not seen adequate genuine product innovation over the last few years,” he included.
Munjal said that over the previous year, Unacademy consolidated company-operated centres with franchise partners, completed an INR 50 crore (₤ 5.2 million) ESOP buyback with almost 40% involvement, developed money reserves of over USD $100m, and highlighted that AI will fundamentally improve education, making the edtech sector “one of its biggest beneficiaries”.
upGrad co-founder Ronnie Screwvala validated the acquisition, mentioning that the deal consists of a break charge, a charge payable if the transaction does not close, to make sure both parties remain dedicated.
“We at upGrad have signed a term sheet to acquire Unacademy in an all-stock deal, with Founder and CEO Gaurav Munjal staying on to construct Unacademy and concentrate on what it does best, developing online education items that learners love,” specified Screwvala.
“They interrupted the sector once, and now with AI they plan to do it once again. We are currently seeing Airlearn acquire international traction, and if this closes, upGrad’s integrated model with a broadened focus from K-12 to forever finding out will be on a strong trajectory.”
UpGrad has typically focused on college, upskilling, and early-career programs however lacked K-12 and test preparation, which Unacademy brings at scale, permitting the combined entity to engage learners earlier and keep them throughout several phases.
The acquisition likewise enhances upGrad economically, with Unacademy’s $100m cash reserves offering a cushion amidst a tighter funding environment. Earnings fell 16% year-on-year to INR 826.3 crore (₤ 68.6 m) in FY25 from INR 988 crore (₤ 82m) in FY24, however the business narrowed its EBITDA loss by 38% to INR 305 crore (₤ 25.3 m) and minimized its net loss by 31% to INR 436 crore (₤ 36.2 m).
Analysts say the offer offers upGrad quick access to Unacademy’s user base and cash reserves, reducing reliance on external fundraising while backing its expansion strategies.
We share upGrad’s belief that’ The entire is larger than the Amount of Components ‘and altogether we will impact trainees, learners and working professionals and build terrific items from K12 to Forever Learning
Gaurav Munjal, Unacademy
The deal follows months of earlier talks that collapsed over appraisal distinctions, with Unacademy’s current value estimated 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 players like Byju’s and Unacademy reporting losses and scaling back operations, though the sector is projected to grow to over USD $61bn by 2035, with numerous platforms preparing IPOs, including upGrad, which is apparently targeting a $350-400m IPO in 2027.
The acquisition comes almost 5 years after BYJU’S got Aakash at the peak of India’s pandemic-era edtech boom, when equity capital flooded the sector and online-only models were widely adopted.
Considering that 2022, the sector has actually gone into a correction stage, with online-only knowing losing momentum, several start-ups pivoting to hybrid or offline models, and prevalent layoffs and closures among 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 aspiration to create a full-stack learning and profession community.
Professionals have suggested that the combined upGrad-Unacademy entity, together with PhysicsWallah, will control the sector as debt consolidation narrows the market to a couple of major gamers.
“We share upGrad’s belief that ‘The entire is bigger than the Amount of Components’ and completely we will affect trainees, students and working specialists and build excellent products from K12 to Forever Learning. The next chapter for education is just beginning,” specified Munjal.
< img src ="// www.w3.org/2000/svg'%20viewBox='0%200%200%200'%3E%3C/svg%3E"/ > < img src="https://thepienews.b-cdn.net/wp-content/uploads/2026/03/PLE-live-news-embedded-advert-600x500-1.gif"/ >