Key facts
- Unacademy has been acquired by rival upGrad for $206 million.
- The acquisition price is approximately 94% lower than Unacademy's peak valuation of $3.44 billion in 2021.
- The deal is an all-stock transaction where Unacademy shareholders receive upGrad shares.
- Unacademy's co-founder and CEO Gaurav Munjal confirmed the deal closure.
- The Unacademy brand will be retained, and no layoffs are planned for its approximately 1,000 employees.
Unacademy, once a prominent Indian edtech startup, has been acquired by its rival upGrad for approximately $206 million. This valuation represents a significant drop of about 94% from its peak valuation of $3.44 billion in 2021.
The all-stock deal, confirmed by Unacademy CEO Gaurav Munjal, will see Unacademy shareholders receive shares in upGrad. Angel investors were cashed out at the closing of the transaction, according to upGrad co-founder Ronnie Screwvala.
Munjal acknowledged the stark difference between Unacademy's peak fundraising valuation and its current sale price, stating, "We raised at a peak, but sold at a fraction of that." He noted that the company had about $94.8 million in the bank and annual revenue of around $42.13 million, with most of its businesses profitable or nearing profitability. The decision to sell was not forced, but driven by a belief that further expansion into broader educational areas, including offline education where upGrad has a stronger presence, was necessary for scale and potential public listing.
The acquisition includes Unacademy's language-learning app, Airlearn, which will initially remain with upGrad. A decision on Airlearn's future, whether to continue internal development or seek external capital, is expected within six months. The Unacademy brand will be maintained, and Munjal will continue to lead Unacademy's online operations and Airlearn. No layoffs are anticipated for the Unacademy Group's approximately 1,000 employees.
This sale follows a broader downturn in India's edtech sector after a surge in demand during the pandemic. Notably, Byju's, previously India's most valuable startup valued at $22 billion, effectively saw its valuation drop to zero and entered insolvency proceedings in 2024.