Non-academicwhich was once one of India’s most valuable edtech startups, is set to be acquired by a rival company. upGrad In a comprehensive deal that will bring together two major online learning platforms in the country.
On Sunday, Unacademy co-founder and CEO Gaurav Munjal He said In a post on X, the two companies have signed a term sheet for upGrad to acquire Unacademy in a 100% stock swap deal, adding that the valuation will not be revealed until the deal closes. The announcement comes more than three months after Munjal announced that Unacademy’s valuation had fallen below $500 million — down nearly 85% from its pandemic-era peak of $3.5 billion in 2021.
India’s once-thriving education technology sector has been struggling since the easing of pandemic-era lockdowns, with students returning to classrooms and demand for online test preparation and learning platforms declining. Companies including Unacademy, which expanded aggressively during the pandemic, have since cut costs, scaled back their offline ambitions and refocused on core digital products.
In a Separate functionMunjal will continue to lead Unacademy after the acquisition, said Ronnie Screwvala, co-founder of upGrad, adding that this merger will strengthen UpGrad’s integrated model that includes K-12 education, upskilling, and lifelong learning. The two companies agreed to an undisclosed break fee if the deal does not go through, Screwvala said.
“Unacademy helped invent the modern edtech game,” Munjal wrote. “Along the way we lost some focus and market share, and the sector itself has not seen enough real product innovation in recent years.”
Founded in 2015, Unacademy emerged as one of the most prominent edtech startups in India during the pandemic, when lockdowns pushed millions of students to online learning platforms. But as demand declined after classes reopened, the company cut costs, laid off staff, and restructured parts of its business.
Unacademy currently has more than $100 million in cash reserves after spending the past year consolidating the offline centers the company runs with franchise partners and refocusing on its core online learning products, Munjal said. He said the company also completed a buyback of employee shares worth 500 million rupees (about $5.40 million), with the participation of nearly 40% of former employees.
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Unacademy has raised about $854.3 million across 13 funding rounds, according to PitchBook, and counts investors including SoftBank, Tiger Global, General Atlantic, and Peak XV Partners among its backers.
The disruption has reshaped the competitive landscape of the edtech sector in India. Byju’s, once the country’s most valuable startup, saw its valuation drop to virtually zero and entered insolvency proceedings in September 2024.
Meanwhile, rival Physics Wallah, once seen as an underdog in the sector, turned profitable and continued to expand. The company made a strong debut on the public markets late last year.
In recent months, Munjal has devoted increasing attention to Airlearn, an AI-based language learning app that mimics the game-based approach popularized by Duolingo. The shift has created friction with some Unacademy investors, who feel its core ed-tech business has been left adrift during a difficult phase, people familiar with the matter told TechCrunch.
However, Munjal said Airlearn is gaining traction in markets including the US, UK, Germany and Canada, and he opined that AI could unleash a new wave of innovation in education technology.
