Edtech major UpGrad is in talks to acquire Unacademy in a deal that could value the test-prep platform at $300–400 million ( ₹2,800–3,500 crore), Moneycontrol reported citing people familiar with the matter.
“The two companies could sign a term sheet in three weeks,” one person said, requesting anonymity as the discussions are private.
The potential valuation represents a sharp drop from Unacademy’s $3.44 billion valuation in 2021, signaling how far India’s pandemic-era edtech boom has cooled.
AirLearn to be spun out as separate entity
As part of the proposed transaction, Unacademy’s language-learning app AirLearn will be spun out into a separate company.
“The core test-prep business — including its growing offline learning centres — will be sold to UpGrad,” another source said, as per the news report, adding that UpGrad will have no equity in AirLearn.
Cash burn falls, reserves rise
Unacademy has drastically reduced its cash burn from over ₹1,000 crore annually at its peak to around ₹100 crore now, the news outlet stated citing people aware of the company’s finances.
The firm currently holds about ₹1,200 crore in cash reserves, making it a relatively stable and attractive acquisition target.
Unacademy’s pandemic rise and investor backing
Founded in 2015, Unacademy rose to prominence as one of India’s top edtech unicorns during the pandemic, backed by marquee investors such as General Atlantic, SoftBank, and Temasek.
Temasek, Singapore’s state investment firm, has a strong presence in both companies. It led Unacademy’s $440 million Series H round in August 2021 and is also a key investor in UpGrad, having invested $120 million in 2021 and $60 million in 2024.
For UpGrad, founded by Ronnie Screwvala, Mayank Kumar, and Phalgun Komandur, the potential deal could be one of the largest consolidation moves in India’s edtech space this year.
Here’s a quick overview of both companies:
UpGrad
Founded: 2015
Founders: Ronnie Screwvala, Mayank Kumar, Phalgun Komandur, and Ravijot Chugh
Headquarters: Mumbai, India
Focus: Higher education, professional learning, and career upskilling
What it does:
UpGrad partners with global universities and industry leaders to offer online degree programs, MBA courses, and professional certifications in fields like data science, business, technology, and management. It targets working professionals and college graduates who want to upgrade their skills or advance their careers.
Key investors: Temasek, IIFL, and International Finance Corporation (IFC).
Unacademy
Founded: 2015
Founders: Gaurav Munjal, Roman Saini, and Hemesh Singh
Headquarters: Bengaluru, India
Focus: Test preparation and online education
What it does:
Unacademy began as a YouTube channel and grew into one of India’s largest online learning platforms. It offers live and recorded classes for competitive exams such as UPSC, JEE, NEET, CAT, and banking exams. The company has also expanded into offline coaching centres and runs other verticals like the language-learning app AirLearn.
Source: Mint