CCI okays upGrad-Unacademy merger, clears path for major edtech consolidation; details here
The Competition Commission of India (CCI) has approved upGrad’s acquisition of certain shares in Unacademy’s parent company, Sorting Hat Technologies Private Limited, followed by Sorting Hat’s merger with upGrad Education Private Limited.
“The proposed merger relates to the acquisition of shares in Sorting Hat Technologies Private Limited (Target) and its merger with upGrad Education Private Limited (Buyer),” the competition watchdog said in an official statement released on Tuesday. It was also stated that a detailed instruction of the commission would be given.
CCI’s approval comes nearly two months after upGrad filed for merger in May to acquire Unacademy, according to media reports.
The changing environment in the education technology sector
This furlough paves the way for one of the biggest consolidation moves in India’s edtech sector as companies adapt to a post-pandemic market marked by slower growth and a greater focus on profitability.
Founded in 2015, Unacademy experienced rapid growth as the demand for online education increased among students during the pandemic period. The Bengaluru-based company has established a strong presence in competitive exam preparation, entrance and recruitment testing.
Unacademy will be purchased at 90% below its 2021 value
upGrad is buying Unacademy at a price drop of more than 90% from its 2021 valuation and also at a price below what it was willing to accept in the previous round of negotiations, Mint reported, citing people with knowledge of the matter.
The stock deal is likely to value Unacademy at approx. ₹2,055 crore was stated in the news. The edtech firm was valued at $3.4 billion in 2021, and upGrad had suggested a valuation of $300-400 million in November last year before talks collapsed in January 2026.
Senior leadership leaves upGrad amid Unacademy integration
Separately, online education and skills platform upGrad has also seen high-profile exits as it is in the process of integrating Unacademy following its acquisition of the K-12 edtech startup and preparing for a potential IPO next year.
The group’s chief financial officer (CFO), Venkatesh Tarakkad, who was promoted by Ronnie Screwvala, and upGrad Enterprise chief executive officer (CEO), Srikanth Iyengar, and others are about to leave, Mint reported in April.
upGrad Enterprise provides skills and workforce training programs to businesses and helps them address skills gaps through courses tailored to their organizational needs, a former senior employee told Mint. In many cases, the unit works with clients to create common courses for specific teams or functions rather than simply offering standard modules.
While UpGrad competes with the likes of Simplilearn, Emeritus, Coursera, and Newton School in developing workforce skills, it also competes with online offerings from universities and institutes targeting working professionals.
This specific segment is large and still expanding. India’s corporate training market will reach $12.2 billion by 2025, according to an earlier report by market research firm IMARC Group.
