Indian edtech company upGrad has signed a term sheet to acquire rival online learning platform Unacademy in a 100% share-swap deal, marking a significant consolidation move in the country’s education technology sector. The announcement was confirmed by the founders of both companies, signaling a strategic effort to combine resources as the industry undergoes a period of restructuring.
Under the proposed agreement, the acquisition will be completed through an all-stock transaction in which Unacademy shareholders will receive shares in upGrad instead of cash. The final valuation of the deal has not been disclosed and will be revealed only after the transaction closes and regulatory filings are completed.
upGrad chairman Ronnie Screwvala confirmed the development and stated that Unacademy’s co-founder and CEO Gaurav Munjal will continue to lead the company following the acquisition, focusing on strengthening its core online learning products. Munjal also confirmed the agreement and emphasized that the two companies share a common vision of building high-quality digital education platforms for learners in India and globally.
The deal comes during a challenging phase for India’s edtech industry, which experienced rapid growth during the COVID-19 pandemic but has faced slowing demand and funding pressures as students returned to physical classrooms. Several companies that expanded aggressively during the pandemic have since cut costs, restructured operations, and shifted focus toward sustainable business models.
Unacademy, once one of India’s most valuable edtech startups with a valuation of about $3.5 billion in 2021, has seen its valuation decline sharply to below $500 million in recent years as the sector cooled and growth slowed. The proposed acquisition reflects broader consolidation trends in the edtech space as companies look to combine capabilities, reduce competition, and strengthen their long-term market position.
Founded in 2015 and headquartered in Bengaluru, Unacademy provides online courses and exam preparation content for competitive exams and professional learning. upGrad focuses on higher education, upskilling, and professional certification programs. By bringing the two platforms together, the companies aim to expand their combined reach across multiple learning segments, ranging from K-12 and test preparation to lifelong professional education.
Industry observers view the deal as a major step in the ongoing consolidation of India’s edtech ecosystem, where companies are increasingly joining forces to scale operations, integrate technology, and adapt to evolving demand in digital education.
