UpGrad in talks to acquire Unacademy in $300–400 million deal

Indian edtech major upGrad is reportedly in advanced discussions to acquire Unacademy in a deal valued between $300 million and $400 million (₹2,800–3,500 crore). According to sources familiar with the talks, the two companies could sign a term sheet within the next three weeks.

If completed, this acquisition would mark a major consolidation in India’s education technology sector — and a steep reset in valuation. Unacademy, once valued at $3.44 billion in 2021, now reflects how the pandemic-era edtech boom has cooled as the industry adjusts to post-COVID realities.

As part of the deal, Unacademy plans to spin off its language-learning app, AirLearn, into a new company. upGrad is expected to acquire Unacademy’s core test preparation business, including its rapidly expanding offline learning centres. However, upGrad will not take any stake in AirLearn.

Unacademy has made significant progress in improving its financial health. Its annual cash burn, which once exceeded ₹1,000 crore, has dropped to about ₹100 crore. The company reportedly holds around ₹1,200 crore in cash reserves, making it a relatively stable and attractive target for acquisition.

Founded in 2015, Unacademy quickly became one of India’s top edtech unicorns, backed by leading investors like General Atlantic, SoftBank, and Temasek. The platform grew rapidly during the pandemic, helping millions of students prepare for competitive exams.

For upGrad, led by Ronnie Screwvala, this move could strengthen its footprint in test prep — complementing its strong presence in higher education, upskilling, and professional learning. If the deal goes through, it would highlight a broader trend in India’s edtech landscape: fewer, stronger players focused on sustainable growth over rapid scale.