UpGrad Acquires Unacademy for Over $200 Million in All-Stock Deal, 94% Below 2021 Peak Valuation

UpGrad has completed the acquisition of Unacademy Group in an all-stock deal valued at just over $200 million, as per a Times of India news report. This is nearly 94% lower than Unacademy’s peak valuation of around $3.4 billion in 2021. 

The deal was first set out in a term sheet signed in March 2026 and received approval from the Competition Commission of India (CCI) in July. The transaction covers Unacademy Group and all its operating entities. 

Share Swap Transaction 

Unacademy shareholders will receive shares in upGrad instead of a cash payment. The transaction involves the acquisition of shares in Unacademy’s parent, Sorting Hat Technologies, and its merger into upGrad Education. 

Gaurav Munjal will continue as CEO of Unacademy and will head the Unacademy Group businesses within upGrad. Unacademy said it had a topline of around ₹400 crore at the time of closing, with most business lines profitable or close to profitability. 

The company also had around ₹900 crore in cash. Munjal said Unacademy had the option of continuing independently and that the transaction was not driven by a need for cash. 

Unacademy’s Businesses 

The acquisition adds Unacademy’s competitive exam preparation business to upGrad’s existing higher education, professional upskilling, careers and study-abroad operations. Unacademy offers courses for exams such as UPSC, JEE, NEET, and GATE. 

The company also operates in language learning and creator monetisation. Its free platform’s educator videos have crossed 10 billion views on YouTube. 

Airlearn, Unacademy’s language-learning app launched two years ago, has 10 million learners across more than 150 countries. The company said it is among the three most downloaded language-learning apps globally in its category. 

Earlier Talks Fell Through 

The acquisition follows earlier attempts to sell or combine Unacademy. upGrad had previously walked away from acquisition talks over differences on valuation.  

In 2024, discussions with Kota-based Allen Career Institute also ended without an agreement. Unacademy had also considered moving towards a franchise-led offline model during a period of tighter funding and consolidation in the edtech sector.  

The company had also faced employee concerns over changes to its ESOP policy. 

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Conclusion 

The acquisition places Unacademy’s businesses under upGrad while its existing products and services continue. Subscriptions, courses, batches, and educator agreements remain in force following the transaction. 

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