The Competition Commission of India (CCI) has approved upGrad’s acquisition of certain shareholding in Unacademy’s parent company, Sorting Hat Technologies Private Limited, along with the merger of Sorting Hat into upGrad Education Private Limited. The approval was announced on July 7, clearing the way for a major consolidation in the Indian edtech sector, according to livemint.com.
The acquisition, structured as an all-stock deal, values Unacademy at about ₹2,055 crore ($218 million), nearly 90% lower than its peak valuation, inc42.com reports. The deal follows months of negotiations primarily focused on valuation differences. Unacademy cofounder and CEO Gaurav Munjal had confirmed the signing of a term sheet after earlier merger talks had stalled. The merger will enable upGrad to expand into the K12 and exam preparation segments.
This deal marks a significant consolidation in the Indian edtech market, where upGrad has pursued an aggressive inorganic growth strategy, acquiring more than half a dozen companies since 2022, including Internshala. The acquisition adds to upGrad’s portfolio, positioning it strongly across various education verticals. Unacademy, once a unicorn, is now valued substantially lower, reflecting shifts in the sector’s funding and valuation dynamics.
The CCI’s approval came nearly two months after upGrad announced the acquisition in April, and a detailed order from the commission is expected to follow. This merger is among the largest in Indian edtech this year, signaling ongoing consolidation in the sector, per livemint.com.