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Munjal, acknowledging the steep difference between the company’s peak valuation and the acquisition value, said: “We raised at a peak, but sold at a fraction of that.”
UpGrad has completed its acquisition of Unacademy for just over $200 million, or around ₹1,900 crore. (IMAGE: X)
Ronnie Screwvala-led UpGrad on Monday completed its acquisition of Unacademy for just over $200 million, or around ₹1,900 crore, marking the close of a major consolidation in India’s edtech sector.
The final value of the transaction is more than 90% below Unacademy’s peak valuation of $3.4 billion in 2021, when the online education company became one of India’s most prominent edtech unicorns.
The acquisition is a 100% share-swap transaction under which Unacademy’s investors will receive UpGrad shares. Unacademy co-founder and CEO Gaurav Munjal will continue to lead the company.
Munjal, acknowledging the steep difference between the company’s peak valuation and the acquisition value, said: “We raised at a peak, but sold at a fraction of that. I’m not going to dress these facts up.”
Unacademy has a topline of around ₹400 crore, with most of its businesses either profitable or close to profitability, while the company has around ₹900 crore in the bank, Munjal said. He added that the company was under no pressure to sell and could have continued independently, but chose the merger as a better path for its ecosystem and shareholders.
From LBSNAA To Unacademy
As the acquisition was completed, Unacademy co-founder Roman Saini looked back on the journey that began during his time at the Lal Bahadur Shastri National Academy of Administration (LBSNAA), when he decided to quit the civil services and build the company with Munjal.
“It has been one helluva journey since that stroll in LBSNAA when I was on the phone with @gauravmunjal and decided to quit IAS and build Unacademy,” Saini said in a post.
He recalled how Unacademy grew dramatically during the Covid-19 pandemic, when more than 100,000 live classes were being conducted on the platform every month and the company had nearly one million paid subscribers.
Saini also remembered meeting a CISF officer during a flight who recognised him and thanked him for making online education available to people who could not attend offline coaching centres while continuing to work.
“When we started posting videos on YouTube, very few smart people were teaching online,” Saini said, recalling a time when becoming an online educator was still looked down upon.
He said he personally called around 200 people during the first month to persuade them to teach online. The platform subsequently grew from millions of views to billions, while many of India’s leading educators eventually taught on Unacademy.
‘The Journey Wasn’t Easy’
Saini also recalled some of the more difficult periods in Unacademy’s growth, including staying up through the night to make videos when views declined because he did not want the company to record a month without growth.
He also remembered travelling with Munjal to China for a meeting with an investor who did not turn up.
“Whether it’s the sleepless nights, or the rejections, or the constant firefighting during good times and bad, it is a journey to remember,” Saini said.
He said he was proud of the impact Unacademy had created in India’s education ecosystem and described the opportunity to build the company as one that “very few people get”.
“And now, as a part of upGrad, we are looking forward to creating an even bigger dent in the universe with @RonnieScrewvala,” Saini said.
What Happens To Unacademy Now?
Unacademy, PrepLadder, AirLearn and Graphy will operate from Bengaluru following the transaction, with PrepLadder’s headquarters shifting from Chandigarh.
Unacademy’s educators have collectively crossed 10 billion views on YouTube, while its language-learning platform AirLearn has become one of the world’s three most-downloaded language-learning apps in less than two years.
AirLearn will also become part of UpGrad following the transaction.
The companies began negotiations in November 2025 but called off talks in January after failing to agree on valuation. Discussions resumed in March, when Munjal and Screwvala announced a term sheet for a 100% share swap carrying a break fee.
The Competition Commission of India cleared the merger on July 7.
Unacademy has also completed an employee stock option exercise worth ₹45 crore, with around 1,000 of its 1,100 former employees participating.
The acquisition gives UpGrad an entry into the online test-preparation segment and is expected to strengthen its position across India’s education and upskilling market.
Quick Answers
Ask News18This acquisition signals a broader shift in the Indian edtech market toward consolidation, profitability, and AI-led, enterprise-focused growth. It highlights a trend where surviving independently has become difficult for single-segment edtech businesses, making equity-sharing and mergers more common than expensive cash exits. Additionally, the deal creates a larger integrated platform spanning test preparation, higher education, and professional upskilling.
Ask News18About the Author
Shankhyaneel Sarkar is a chief sub editor at News18. He covers international affairs, where he focuses on breaking news to in-depth analyses. He has over seven years of experience during which he has …Read More
September 01, 2026, 7:44 PM IST
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