upGrad planning to acquire Unacademy in all-stock deal

New Delhi: Edtech firm upGrad is planning to acquire rival platform Unacademy through an all-stock deal, according to Unacademy cofounder and Chief Executive Officer Gaurav Munjal.

In a post on X, Munjal said the valuation of the proposed transaction will be disclosed only after the deal closes and regulatory filings are made. He added that he will continue as cofounder and CEO of Unacademy if the deal goes through.

Ronnie Screwvala, cofounder of upGrad, said the potential combination would strengthen the company’s integrated learning model, expanding its focus from K-12 education to lifelong learning and professional upskilling. Under the arrangement, Unacademy would continue building online learning products.

Munjal said Unacademy has undertaken several operational changes over the past year, including consolidating company-run offline centres with franchise partners to refocus on core digital learning offerings. The company also carried out a Rs 50 crore employee stock ownership plan (ESOP) buyback, with around 40 per cent of former employees participating. It currently holds more than $100 million in cash reserves.

He added that Unacademy’s global product, Airlearn, is gaining traction in markets such as the US, the UK, Germany and Canada.

Earlier discussions between the two companies had stalled over valuation differences. The proposed deal reportedly valued Unacademy at about $300 million, significantly lower than its $3.4 billion peak valuation in 2021.

Unacademy has also held talks with Allen Career Institute in the past, but those negotiations collapsed over valuation issues. The company’s revenue declined to about Rs 820 crore in 2024-25 from Rs 1,044 crore in 2022-23.