Upgrad to acquire Unacademy in ₹20.55 billion all-stock deal

UpGrad has agreed to acquire Unacademy in an all-stock deal valuing the Bengaluru edtech at ₹20.55 billion

UpGrad is set to acquire Unacademy in an all-stock transaction after months of negotiations, valuing the Bengaluru-based edtech at ₹20.55 billion, according to people familiar with the matter. The deal pegs Unacademy more than 90% lower than its peak valuation of $3.4 billion from the 2021 funding boom.

Unacademy is expected to have ₹9-9.5 billion in cash on its books at closing, a key factor for UpGrad. Binding agreements are expected shortly, with a Competition Commission of India (CCI) approval filing planned this week. Separately, UpGrad is in talks to raise an internal round of approximately ₹3.75 billion from existing backer Temasek and founder Ronnie Screwvala.

Temasek holds 22% of UpGrad and 5% of Unacademy. This development matters because it marks one of the most significant consolidation moves in India’s edtech sector, which is recovering from a post-Covid slump. Unacademy raised $880 million cumulatively, including a $440 million round led by Temasek in August 2021, but has since pivoted from an online-only model to offline-heavy centres.

Stakeholders include employees of both firms, investors, and competing platforms.

For investors, the deal reflects severe valuation corrections in pandemic-era edtech darlings and signals continued consolidation pressure following Byju’s collapse.

UpGrad is an Indian higher education and upskilling platform headquartered in Mumbai.

Unacademy is a Bengaluru-based edtech platform offering test preparation and learning programs.