upGrad May Acquire Unacademy in $300–400 Million Deal

The Indian edtech industry is buzzing again, and this time, it’s not about another round of layoffs or funding crunches. Instead, it’s about a potentially massive shake-up. According to multiple reports, upGrad, co-founded by entrepreneur and media veteran Ronnie Screwvala, is in advanced talks to acquire Unacademy — one of India’s most well-known online learning startups — in a deal that could value it between $300–400 million.

If that happens, it would be one of the most high-profile consolidations in the Indian startup space this year, possibly marking a new phase for the edtech sector that has seen its share of ups and downs since the pandemic boom.

From Billion-Dollar Darling to Buyout Talks

Just a few years ago, Unacademy was a symbol of India’s edtech success story. Founded by Gaurav Munjal, Hemesh Singh, and Roman Saini, the company had hit a whopping $3.44 billion valuation at its peak in 2021, backed by marquee investors like SoftBank, General Atlantic, and Tiger Global.

Fast forward to 2025, and the picture looks very different. As per recent reports, the deal with upGrad could value Unacademy at around 10% of its previous worth. That’s quite a fall from grace, but to be fair, it’s not entirely unexpected.

The pandemic years were a golden period for edtech. Everyone was at home, schools were shut, and online learning felt like the future. But when the world reopened, the momentum slowed, user acquisition got harder, and reality struck — not all those shiny valuations were sustainable.

So in a way, this potential acquisition feels like the next logical step in an industry trying to find its equilibrium again.

Read: Best Education Business Ideas

What’s Actually on the Table

The reported deal isn’t a complete buyout of every Unacademy vertical. Sources suggest that upGrad might acquire only the core test-preparation and learning-center business, while Unacademy’s AirLearn — its newer language-learning arm — will likely remain independent.

Think of it like a strategic carve-out. upGrad gets the big prize — Unacademy’s offline presence and brand equity in competitive exam prep — while Unacademy’s founders retain a slice of the pie through AirLearn.

Interestingly, Unacademy still has around ₹1,200 crore in cash reserves and has brought its cash burn down dramatically — from ₹1,000 crore to roughly ₹100 crore. That’s impressive for a company that’s been through such turbulence. Clearly, Gaurav Munjal and his team have been focusing on getting leaner and more disciplined — a survival instinct that’s paid off.

Why upGrad Wants Unacademy

For upGrad, this deal isn’t just about acquiring another brand — it’s about owning the full learner lifecycle.

Let’s break it down. upGrad already dominates in professional upskilling, online degrees, and international courses. What it doesn’t have is a strong play in the K-12 and test-prep market — the segment that Unacademy built its name on. By acquiring Unacademy, upGrad could bridge that gap and become a one-stop platform — from school and college learning all the way to career development.

Also, Unacademy has built a decent offline network of learning centers in cities like Kota, Delhi, Pune, and Bengaluru. That physical infrastructure could help upGrad accelerate its hybrid education strategy, which is clearly where the future is headed.

And let’s not forget the brand synergy. Both companies speak the same language — aspirational, digital-first, and education-focused. There’s a good cultural fit here, at least on paper.

The Valuation Shock — or Smart Timing?

Of course, the headline-grabbing number here is the valuation — $300 to $400 million. Compared to Unacademy’s 2021 peak of $3.44 billion, that’s a steep drop. But in the current market context, maybe it’s not as dramatic as it seems.

Almost every big edtech player has seen a valuation correction. Byju’s, once a $22 billion company, is now a case study in what not to do during hypergrowth. So, for upGrad, this might actually be the perfect time to buy — when valuations are realistic and the focus has shifted from vanity metrics to profitability.

To put it bluntly, this could be a “Warren Buffett moment” for Ronnie Screwvala — buying value when others are scared to touch it.

The Broader Industry Message

If this acquisition goes through, it will likely trigger a domino effect in the Indian edtech space. Smaller players might look for mergers or partnerships to survive. Investors, meanwhile, may start re-evaluating their portfolios, preferring startups with solid revenue models over those just chasing user growth.

It’s consolidation season — and upGrad might just be leading the charge.

Also, this move could redefine how edtech firms position themselves. The “pure online” model is slowly giving way to hybrid ecosystems that combine digital content with physical learning experiences. Students still want flexibility, but they also value in-person guidance and community learning — something Unacademy’s offline centers have been quietly experimenting with.

The Road Ahead — Easier Said Than Done

Of course, not everything will be smooth sailing. Integrating two large edtech firms with distinct cultures, technologies, and leadership styles is no small task. upGrad will have to manage this merger carefully to avoid clashes or inefficiencies.

There’s also the question of brand identity. Will Unacademy continue to operate under its own name, or will it be absorbed into the upGrad ecosystem? Both brands have strong recognition, so merging them too quickly could backfire.

And then there’s the human element — hundreds of educators, employees, and mentors who have built their careers with Unacademy. Ensuring a smooth transition for them will be key to maintaining trust.

A Personal Take — A Smart, Pragmatic Move

Honestly, I think this deal (if it happens) is a smart and necessary move — not just for upGrad or Unacademy, but for Indian edtech as a whole.

The sector has matured. The days of inflated valuations and unchecked growth are gone. What’s left are companies that genuinely want to build long-term value, and this acquisition shows that upGrad isn’t afraid to bet big on the future — even if it means cleaning up some of the excesses of the past.

In a way, it also feels symbolic. Two of India’s biggest education startups — once rivals chasing the same dream — might now join forces to build something more stable, sustainable, and perhaps, even global.

The Bottom Line

If the reports are accurate, upGrad’s acquisition of Unacademy could be the turning point the edtech sector has been waiting for. It’s not just a story about numbers or valuations — it’s about evolution.

upGrad gets scale, Unacademy gets stability, and together they might just redefine how India learns — both online and offline.

Of course, it’s still early days. The deal isn’t signed yet, and there’s plenty of due diligence to go. But whatever the outcome, this story captures what makes India’s startup scene fascinating — resilience, reinvention, and relentless ambition.

And honestly, in a year when most startup headlines have been gloomy, this one feels refreshingly forward-looking.

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