UpGrad in talks to acquire Unacademy in $300–400 million deal: Report
Edtech leader UpGrad is in talks to acquire Unacademy in a deal that could value the test prep platform at $300-400 million ( ₹2,800-3,500 crore), Moneycontrol reported quoting people familiar with the matter.
“The two companies can sign a memorandum of understanding within three weeks,” said a person who wished to remain anonymous because the talks were private.
The potential valuation represents a sharp decline from Unacademy’s $3.44 billion valuation in 2021, signaling how India’s pandemic-era edtech boom has cooled.
AirLearn will be expanded as a separate entity
As part of the proposed transaction, Unacademy’s language learning app AirLearn will be spun off into a separate company.
“The core test prep business, including its growing offline learning centers, will be sold to UpGrad,” another source said, according to the report, adding that UpGrad will not have any equity in AirLearn.
Cash burn is decreasing, reserves are increasing
Unacademy greatly reduces cash burn ₹Around 1,000 crore annually at peak ₹100 crore currently, the news outlet said, citing people with knowledge of the company’s financials.
The company is currently approximately ₹Its cash reserves of 1,200 crore make it relatively stable and an attractive acquisition target.
Unacademy’s pandemic rise and investor support
Founded in 2015, Unacademy emerged as one of India’s top edtech unicorns during the pandemic and was backed by notable investors such as General Atlantic, SoftBank and Temasek.
Singapore’s state investment company Temasek has a strong presence in both companies. He led Unacademy’s $440 million Series H round in August 2021 and is also a major investor in UpGrad, investing $120 million in 2021 and $60 million in 2024.
The potential deal for UpGrad, founded by Ronnie Screwvala, Mayank Kumar and Phalgun Komandur, could be one of the biggest consolidation moves in India’s edtech space this year.
A brief overview of both companies:
upgrade
Founders: Ronnie Screwvala, Mayank Kumar, Phalgun Komandur and Ravijot Chugh
Headquarters: Mumbai, India
Focus: Higher education, professional learning and career development
UpGrad partners with global universities and industry leaders to offer online degree programs, MBA courses, and professional certifications in fields such as data science, business, technology, and management. It targets working professionals and college graduates who want to improve their skills or advance their careers.
Key investors: Temasek, IIFL and International Finance Corporation (IFC).
Founders: Gaurav Munjal, Roman Saini and Hemesh Singh
Headquarters: Bengaluru, India
Focus: Test prep and online education
Unacademy started as a YouTube channel and has grown to become one of India’s largest online learning platforms. It offers live and recorded classes for competitive exams like UPSC, JEE, NEET, CAT and banking exams. The company has also expanded its offline coaching centers and operates other verticals such as language learning app AirLearn.
Key investors: SoftBank, General Atlantic, Temasek and Sequoia Capital.
