Edtech major upGrad is reportedly in advanced discussions to acquire Unacademy in a deal that could value the Bengaluru-based company at ₹2,500–3,300 crore ($300–400 million), according to a Moneycontrol report.
The term sheet for the transaction is expected to be signed within the next three weeks, though no official announcement has been made yet. The proposed valuation represents a sharp decline from Unacademy’s $3.44 billion valuation in 2021, when it raised $440 million in a Temasek-led Series H round.
The structure ensures that upGrad will not hold any equity in AirLearn. As part of the deal, Unacademy will spin off its language-learning app, AirLearn, into a separate entity, while upGrad will acquire the core test-prep business, including the company’s expanding offline learning centres.
Over the past three years, Unacademy has undertaken aggressive cost-cutting, reducing its annual cash burn from over ₹1,000 crore to around ₹100 crore, while maintaining ₹1,200 crore in cash reserves, making it an attractive acquisition target.
The talks come amid internal restructuring at Unacademy. In September 2025, Unacademy appointed co-founder Sumit Jain, who joined through the CommonFloor acquisition, as CEO of its test-prep business to lead offline expansion and profitability, while founders Gaurav Munjal and Roman Saini stepped back from daily operations to focus on AirLearn.
Founded in 2015, Unacademy gained prominence during the pandemic-driven edtech boom, backed by investors such as General Atlantic, SoftBank, and Temasek. However, following the post-pandemic slowdown, the company pivoted to offline test preparation and shut down non-core verticals.
For FY24, Unacademy reported ₹839 crore in revenue, down 7% year-on-year, while net losses narrowed by 62% to ₹631 crore, according to regulatory filings.
Also founded in 2015 by Ronnie Screwvala, upGrad offers online degree and professional certification programs in partnership with global universities. Both companies share a common investor—Temasek, which led upGrad’s $120 million round in April 2021 and invested another $60 million in October 2024.
