Deal Completed at a Fraction of Peak Valuation
Ronnie Screwvala-led upGrad has completed its acquisition of edtech company Unacademy for just over $200 million, according to multiple reports. Unacademy co-founder and CEO Gaurav Munjal confirmed the completion of the transaction in a post on X on September 1, stating that the deal brings to a close months of on-and-off negotiations between the two companies.
"We raised at a peak, but sold at a fraction of that," Munjal wrote, acknowledging the steep decline from Unacademy's pandemic-era valuation. The company had reached unicorn status six years ago, with a peak valuation of $3.44 billion.
The acquisition gives upGrad an entry into the online test-preparation business, adding Unacademy's offerings across UPSC, JEE, NEET and GATE to its existing portfolio of higher education, professional upskilling, study abroad and certification businesses.
News of the deal first surfaced in November 2025, when upGrad was in talks to acquire Unacademy in a deal valued at between $300 million and $400 million, according to a Moneycontrol report cited by India Today. The negotiations went through several rounds and were put on hold at one point due to differences over valuation before resuming. In March, the companies signed a term sheet for an all-stock transaction, with Munjal set to continue as Unacademy's CEO. The Competition Commission of India approved the proposed combination in July, clearing the regulatory hurdle.
Founder Cites Financial Strength, Not Pressure
Munjal said Unacademy entered the acquisition process from a position of financial stability rather than pressure. He said the company had a topline of around ₹400 crore, with most of its businesses profitable or near-profitable, and held around ₹900 crore in cash reserves.
"We had every option to keep going independently. Nobody was forcing this," Munjal wrote on X, as quoted by Business Today. "But sometimes, you are drawn towards a path that is more exciting than the one that makes you more money."
He said the decision to merge with upGrad followed discussions with founder Ronnie Screwvala, whom he had met several times over the years and whose work in higher education he admired. The acquisition comes at a point when Unacademy says its financial position had improved considerably from the difficult period following the edtech boom.
The deal highlights the broader correction faced by India's edtech sector after years of aggressive fundraising and high valuations, as reported by Free Press Journal. Munjal said Unacademy had raised funds during a peak period but exited at a much lower valuation, adding that he did not want to hide the reality of the transaction.
Legacy Beyond Valuation
Munjal also pointed to Unacademy's broader contribution to online education, despite not capturing the full financial value of its mission to democratise education. He said the company's free platform helped create a generation of celebrity educators, whose YouTube videos collectively crossed 10 billion views. Airlearn, Unacademy's language-learning platform, became one of the world's top three most-downloaded language-learning apps in less than two years, he said.
"We always wanted to build a global consumer product out of India. We did," he wrote, as quoted by Business Today.
Munjal said the company changed the structure of online learning in India and influenced the wider industry. He also highlighted that Unacademy had completed four employee stock ownership plan (ESOP) buybacks, which he said helped create value for employees, even though founders and investors did not achieve the same level of financial returns expected during the company's peak valuation phase.
Munjal said he expects Unacademy shareholders to create "immense value" from the merger.
upGrad had a ₹360-crore internal funding round, in which Screwvala invested ₹300 crore, with participation from Temasek, IFC, and 360 One, according to India Today.