Unacademy is likely to be acquired by upGrad in an all-stock deal valued at around ₹2,055 crore ($218 million). Notably, this proposed transaction reflects a sharp 90% decline from Unacademy’s peak valuation, highlighting the ongoing correction in the edtech sector.
Previously, during the 2021 funding boom, Unacademy reached a valuation of nearly $3.4 billion. However, over time, the company experienced a significant drop due to changing market dynamics and increasing competition. Moreover, the rapid rise of generative AI has accelerated disruption in the edtech ecosystem, putting additional pressure on traditional online learning platforms and contributing to declining valuations.
Meanwhile, upGrad will file for approval with the Competition Commission of India this week. Subsequently, both companies are likely to sign the agreement in the coming days, followed by a formal application for regulatory clearance.
Unacademy’s founders—Gaurav Munjal, Hemesh Singh, and Roman Saini—launched the platform in 2015 as a YouTube channel before scaling it into one of India’s leading edtech startups. Earlier, the company held acquisition discussions with Allen Career Institute; however, both parties called off the talks due to disagreements over valuation.
In terms of financial performance, Unacademy is targeting revenue of around ₹400 crore for calendar year 2026, according to sources familiar with the matter. This projection indicates continued pressure on its top line. Additionally, the company reported ₹702 crore in operating revenue for FY25, representing a 16% year-on-year decline.
At the leadership level, CEO Gaurav Munjal confirmed in March that he will continue in his role after the transaction. This decision reverses his earlier plan to step away from daily operations and focus on the language learning app AirLearn, thereby ensuring continuity in leadership during the transition phase.
The proposed Unacademy-upGrad deal underscores the broader transformation within the edtech industry, driven by funding slowdowns, profitability challenges, and the disruptive impact of generative AI. While the acquisition could provide strategic consolidation and operational efficiencies, it also reflects the end of an era marked by inflated valuations. Going forward, sustainability, innovation, and AI integration will define the next phase of growth in the global edtech market.
