Indian edtech company upGrad has signed a term sheet to acquire rival Unacademy in an all-stock deal, signalling a significant consolidation move in the country’s education technology industry. The agreement, announced in March 2026, brings together two major players that have taken different approaches to growth, as the sector undergoes a reset following the pandemic-driven boom.
The transaction will be structured as a 100% share-swap deal, under which Unacademy’s investors will receive equity in upGrad instead of cash. This structure reflects the changing funding environment in the edtech space, where companies are prioritizing sustainability and capital efficiency over aggressive expansion. The deal is also expected to allow Unacademy’s leadership, including CEO Gaurav Munjal, to continue playing a role in the combined entity.
The acquisition represents a strategic alignment of complementary business models. upGrad has built a strong presence in higher education, upskilling, and study-abroad programs, while Unacademy has focused on online test preparation and competitive exam coaching. By combining these strengths, the merged entity aims to create a broader and more diversified education platform catering to multiple learner segments.
The deal comes at a time when India’s edtech sector is witnessing a period of consolidation and restructuring. After years of rapid growth and high valuations, companies are now facing slower demand, tighter funding conditions, and increasing pressure to achieve profitability. The proposed acquisition highlights how leading players are exploring mergers and partnerships to optimize operations, reduce costs, and strengthen market positioning.
Unacademy, once valued at around $3.44 billion in 2021, has experienced a significant valuation reset amid broader industry challenges. Reports suggest that discussions around the acquisition involved a substantially lower valuation range, reflecting changing investor sentiment and business realities in the sector. The deal, therefore, underscores the shift from growth-at-all-costs to a more disciplined and efficiency-driven approach.
For upGrad, the acquisition aligns with its long-term strategy of expanding through selective and strategic deals while maintaining a focus on profitability and potential public listing plans. The company has been actively strengthening its portfolio through acquisitions and partnerships, and the addition of Unacademy is expected to enhance its scale and reach in the competitive edtech landscape.
Overall, the transaction highlights a broader transformation within India’s education technology ecosystem, where consolidation is emerging as a key trend. As companies adapt to new market conditions, deals like upGrad’s acquisition of Unacademy are likely to reshape the competitive dynamics of the industry and influence how digital education platforms evolve in the coming years.
