upGrad has finalized the acquisition of rival edtech platform Unacademy in a deal valued at just over $200 million, marking a 94% drop from Unacademy's peak valuation of $3.5 billion in 2021, according to inc42.com. The all-stock transaction was completed after months of negotiations and regulatory approvals, with Unacademy shareholders receiving stakes in upGrad.
The acquisition, described by upGrad CEO Ronnie Screwvala as six years in the making, provides upGrad with a foothold in K-12 and competitive exam preparation segments. Screwvala highlighted Unacademy's technology stack, brand equity, and the global potential of its language-learning app Airlearn as key reasons behind the deal. Unacademy CEO Gaurav Munjal will continue to lead its core verticals under the combined entity.
Unacademy, which started as a YouTube channel in 2015 and raised $600 million during the pandemic, faced challenges as offline institutions reopened, leading to layoffs and shutdowns of several verticals. Prior to the acquisition, Unacademy had explored potential sales to Allen and K-12 Techno but those discussions failed over valuation disagreements. The deal is expected to leverage upGrad's upskilling network, expertise, and cash to support Unacademy's growth trajectory.
The combined entity aims to unlock value by integrating Unacademy's offerings with upGrad's upskilling focus, expanding into new education segments. The acquisition was officially completed this week, with Unacademy shareholders now holding equity in upGrad, signaling a strategic consolidation in the Indian edtech sector.