Edtech company upGrad has completed its acquisition of Unacademy in an all-stock transaction valued at just over $200 million, marking a dramatic reset for one of India’s most prominent edtech start-ups.
The deal values Unacademy at more than 90 per cent below its peak valuation of $3.44 billion in 2021, when the pandemic-era boom pushed investor expectations for online education to unprecedented levels.
The transaction follows months of on-and-off negotiations. upGrad had called off an earlier proposed acquisition in January, when Unacademy proposed value around $290 million, citing valuation differences and business-related concerns. The two sides revived discussions and signed a term sheet in March for a 100 per cent share-swap transaction, with Unacademy Co-founder and CEO Gaurav Munjal continuing with the company.
The Competition Commission of India cleared the deal in July. The valuation reset comes against a broader restructuring of Unacademy’s business. Its revenue fell 16 per cent to ₹826.2 crore in FY25, while its net loss narrowed to ₹435.4 crore from ₹631 crore a year ago. The company also launched a ₹50 crore ESOP buyback in February.
“We raised at a peak, but sold at a fraction of that,” said Munjal in a post on X, adding that he was nevertheless proud of what the team built between those two points.
The relationship with upGrad’s leadership predates the deal. Ronnie Screwvala, chairperson and co-founder of upGrad, said Munjal had reached out in late July 2025 and openly discussed the “crossroads” at which Unacademy found itself. Screwvala said what stood out was the transparency with which Munjal laid out the situation and what needed to be done.
Founded in 2015 by Munjal, Roman Saini and Hemesh Singh, Unacademy grew from a YouTube channel into a major test-preparation platform. The acquisition gives upGrad a stronger foothold in online test preparation, complementing its existing focus on higher education, professional upskilling and study abroad.