Unacademy, one of India's pioneering edtech platforms, is set to be fully acquired by rival upGrad in a 100% share-swap transaction.
The deal, announced on March 15, 2026, includes an undisclosed break fee should the acquisition fail to close, with valuations to be revealed post-completion.
Unacademy's Journey from Boom to Restructuring
Founded in 2015 by Gaurav Munjal and others, Unacademy surged during the COVID-19 pandemic, raising over $854 million from investors like SoftBank and Tiger Global.
Its valuation peaked at $3.5 billion in 2021 but plummeted below $500 million amid sector challenges, prompting layoffs of 250 employees in 2024 and a shift to franchise-based offline centers.
Despite setbacks, Unacademy maintains over $100 million in cash reserves and recently conducted a ₹500 million employee stock buyback.
upGrad's Expansion Strategy
upGrad, co-founded by Ronnie Screwvala, specializes in upskilling and aims to bolster its integrated model across K-12, upskilling, and lifelong learning through this merger.
Munjal will continue leading Unacademy post-acquisition, focusing on core digital products and innovation.
India's Edtech Sector Faces Consolidation
India's edtech industry, which boomed during lockdowns, has entered a funding winter with cooling demand as students return to physical classrooms.
Competitors like Byju's have seen valuations drop to zero and entered insolvency in 2024, while Physics Wallah achieved profitability and strong public market debut in late 2025.
This acquisition underscores ongoing consolidation, with companies cutting costs and refocusing on sustainable digital growth.
Looking ahead, the combined entity eyes AI-driven innovations, including Munjal's Airlearn app gaining traction in the US, UK, Germany, and Canada.
Munjal stated, “Unacademy helped invent the modern edtech playbook,” highlighting past focus lapses and the need for product innovation.
Andrew Lee
