Unacademy to be acquired by upGrad in share-swap deal as India's edtech sector consolidates | TechCrunch

"Unacademy helped invent the modern edtech playbook. Along the way we lost some focus and market share, and the sector itself has not seen enough real product innovation in recent years. The announcement comes more than three months after Munjal said that Unacademy's valuation had dropped below $500 million - down roughly 85% from its pandemic-era peak of $3.5 billion in 2021."

"India's once-booming edtech sector has struggled since pandemic-era lockdowns eased, as students returned to classrooms and demand for online test prep and learning platforms cooled. Companies including Unacademy, which expanded aggressively during the pandemic, have since cut costs, scaled back offline ambitions, and refocused on core digital products."

"In a separate post, upGrad co-founder Ronnie Screwvala said Munjal will continue leading Unacademy after the acquisition, adding that the combination would strengthen upGrad's integrated model spanning K-12 education, upskilling, and lifelong learning. The companies have agreed to an undisclosed break fee if the deal does not close."

Unacademy, once valued at $3.5 billion during the pandemic, is being acquired by rival upGrad in a 100% share-swap deal. The acquisition comes after Unacademy's valuation dropped below $500 million, representing an 85% decline. India's edtech sector has struggled significantly since pandemic-era lockdowns ended and students returned to physical classrooms, reducing demand for online learning platforms. Unacademy expanded aggressively during the pandemic but subsequently cut costs, reduced offline operations, and refocused on core digital products. CEO Gaurav Munjal will continue leading Unacademy post-acquisition. The combined entity aims to strengthen upGrad's integrated model spanning K-12 education, upskilling, and lifelong learning. Unacademy maintains over $100 million in cash reserves.

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