Major Consolidation in Indian EdTech: upGrad Acquires Unacademy
In a significant move within India’s edtech sector, online learning platform upGrad has signed a term sheet to acquire its rival, Unacademy. This 100% share-swap deal, announced on March 15-16, 2026, marks a dramatic shift in India’s startup ecosystem.
The all-stock transaction’s valuation will remain undisclosed until regulatory filings are completed. This comes three months after Unacademy CEO, Gaurav Munjal, revealed that the company’s valuation had plummeted to below $500 million. This is an 85% collapse from its pandemic-era peak of $3.5 billion in 2021. Munjal will continue leading Unacademy after the acquisition, focusing on building online education products for learners in India and globally.
“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,” Munjal acknowledged. upGrad co-founder Ronnie Screwvala confirmed the agreement includes a break fee if the transaction fails to close.
Founded in 2015, Unacademy emerged as one of India’s most prominent edtech startups during the pandemic. Lockdowns drove millions of students to online platforms. However, as classrooms reopened, the company faced mounting challenges, implementing cost cuts and layoffs.
- Unacademy has raised approximately $854 million from investors including:
- SoftBank
- Tiger Global
- General Atlantic
- Peak XV Partners
The deal reflects broader struggles in India’s edtech sector, where funding plummeted from $4.7 billion in 2021 to just $297 million in 2023.
Source: TechCrunch