UpGrad buys edtech start-up Unacademy for just over $200M
What's the story
Ronnie Screwvala-led UpGrad has officially acquired edtech start-up Unacademy for just over $200 million, the latter's co-founder and CEO Gaurav Munjal announced today. The all-stock deal values Unacademy at more than 90% below its peak valuation of $3.4 billion back in 2021. Munjal will continue to lead the company after the acquisition.
Deal details
Unacademy's investors will get seats on UpGrad's board
The acquisition was first reported by ET on May 4 and was cleared by the Competition Commission of India on July 7. Unacademy's investors will get a seat on UpGrad's board as part of the deal.
Strategic decision
Decision not driven by need for capital: Munjal
Despite having a topline of around ₹400 crore and most businesses being profitable or near-profitable, Munjal said they chose to merge with UpGrad.
"Sometimes, you are drawn toward a path that is more exciting than the one that makes you more money," he said.
The decision was not driven by a need for capital.
Portfolio expansion