Upskilling firm upGrad plans to acquire rival edtech platform Unacademy in an all-stock deal, according to SoftBank-backed Unacademy’s co-founder and chief executive, Gaurav Munjal.
In an X post, Munjal said, “Neither side will disclose the valuation until closing, when the papers are filed and the transaction becomes public.” He added that he will be staying back as the co-founder and CEO of Unacademy.
“If this closes, upGrad’s integrated model with an expanded focus from K-12 to forever learning will be on a strong trajectory,” said Ronnie Screwvala, co-founder of upGrad, on X. “This coming together will strengthen upGrad’s integrated model, with Unacademy under your leadership focusing on what it does best, building great online products. Looking forward to closing this. And Yes The Whole is Bigger than the Sum of Parts is our firm belief.”
Munjal said Unacademy has undertaken several operational changes over the past year, including consolidating company-run offline centres with franchise partners to refocus on its core online education products.
The company also completed a ₹50 crore employee stock ownership plan (ESOP) buyback, with about 40 per cent of former employees participating, he said. Unacademy currently holds more than $100 million in cash reserves.
Munjal added that Airlearn, the company’s first global product, has been gaining traction in markets including the US, UK, Germany and Canada.
He said he plans to focus on building online learning products for students in India and overseas.
Munjal said artificial intelligence is likely to reshape education and could create new opportunities for digital learning platforms. He added that if a deal with upGrad materialises, the companies could work together to build education products spanning K-12 learning, higher education and professional upskilling.
“I have long admired what Ronnie Screwvala and the upGrad team have built. They have quietly but relentlessly established themselves in the upskilling, lifelong learning and higher education space,” said Munjal. “If and when we do come together, we share upGrad’s belief that ‘The Whole is bigger than the Sum of Parts’ and altogether we will impact students, learners and working professionals & build great Products from K12 to Forever Learning.”
Before this development, upGrad had walked away from talks to acquire Unacademy, ending one of the edtech sector’s most closely watched deal discussions amid differences over valuation. The proposed all-stock transaction was said to value Unacademy at about $300 million, a steep drop from its $3.4 billion peak in 2021, while upGrad was seeking a valuation of roughly $2.25 billion for itself, people familiar with the matter said. The collapse followed an earlier failed sale effort by Unacademy. In 2024, the company held talks with Kota-based Allen Career Institute that also fell apart over valuation disagreements. Such developments come amid a turbulent period that has included pushback over changes to its employee stock option policy.
The edtech firm had plans to transition fully to a franchise-led offline model, people familiar with the matter said, amid a tougher funding and consolidation environment for the sector.
Industry executives said the edtech sector continues to face structural challenges, but added that Unacademy’s difficulties stem largely from execution issues rather than broader industry weakness.
Unacademy’s revenue has declined over the past three years, falling to Rs 820 crore in fiscal 2025 from Rs 1,044 crore in fiscal 2023, according to a report by Entrackr. The company has raised a total of $880 million from investors, according to data platform Tracxn.
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