upGrad to Acquire Unacademy in 100% Share Swap Deal Amid Indian Edtech Sector Consolidation

upGrad has signed a term sheet to fully acquire rival edtech firm Unacademy through a 100% share-swap transaction.

Announcements from upGrad founder Ronnie Screwvala and Unacademy CEO Gaurav Munjal on X confirmed the deal, with valuation details withheld until closing.

Indian Edtech's Post-Pandemic Reset

Unacademy rode the pandemic wave to a $3.5 billion peak valuation in 2021 but confessed to a drop below $500 million by late 2025.

The sector's overhyped growth has led to widespread layoffs, funding droughts, and a push towards consolidation for survival.

upGrad, specializing in professional upskilling and higher education, brings complementary strengths to Unacademy's test-prep and K-12 focus.

Deal Structure and Leadership Continuity

Gaurav Munjal will remain CEO of Unacademy, steering its operations within the enlarged entity.

The agreement includes Unacademy's verticals like Airlearn and features a break fee to ensure commitment.

November proposals pegged Unacademy at $300-400 million, underscoring the valuation reset.

This merger promises synergies in content, tech, and distribution, bolstering competitiveness.

Analysts anticipate accelerated M&A as edtech firms scale to achieve profitability amid regulatory and economic pressures.

The combined powerhouse could redefine online learning in India, targeting long-term dominance.