upGrad is set to acquire rival edtech platform Unacademy in an all-stock transaction valued at around ₹2,055 crore, marking one of the biggest consolidation moves in India’s edtech sector.
The deal values Unacademy at nearly 90% below its 2021 peak valuation of $3.4 billion, reflecting the broader correction in the online education market following the pandemic-era boom.
According to reports, Unacademy is expected to have ₹900–950 crore in cash reserves at the time of closing, making it an attractive acquisition for upGrad as it looks to strengthen its market position.
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The acquisition follows months of negotiations between the two companies. Earlier discussions reportedly stalled due to valuation disagreements, but both firms later signed a term sheet for a 100% share-swap transaction.
The proposed deal highlights the ongoing consolidation trend in India’s edtech industry, where companies are focusing on profitability, operational efficiency, and AI-driven learning models amid changing market conditions
