In a major move for India’s digital education sector, upGrad has signed a term sheet to acquire Unacademy in a 100 per cent share-swap transaction. This merger will bring together two of the country’s popular edtech unicorns—upGrad, known for higher education and professional upskilling, and Unacademy, a popular name in the K-12 and test preparation area.
It is pertinent to mention here that in February, upGrad, founded by Ronnie Screwvala, had acquired Internshala, the internship and early-talent marketplace, through a 90 per cent stock-swap deal.
This latest deal now includes a “break fee” to ensure commitment from both sides and reflects a shift in the industry from pandemic-era high valuations to a more disciplined focus on sustainable growth and capital efficiency. Post-merger, the combined entity is projected to be valued at $2.25 billion.
Gaurav Munjal, co-founder, Unacademy (backed by SoftBank), will continue to lead the platform, with a focus on building AI-powered learning products. The merged company will also leverage $100 million in cash reserves to strengthen innovation and expansion. Platforms such as Airlearn, already gaining global traction, will play a key role in this strategy.
The merger comes after Unacademy’s valuation dropped significantly from its 2021 peak of $3.5 billion to below $500 million. By integrating operations, the new entity aims to create a full-stack education ecosystem, serving learners from school years through professional careers and even into retirement. This consolidation is expected to optimise costs, expand reach, and position the company to compete strongly with rivals such as PhysicsWallah.
With a renewed focus on product innovation, AI-driven learning, and global expansion, signals a new chapter for Indian edtech—one centred on profitability, efficiency, and long-term impact across the entire learning journey.