Unacademy-upGrad deal falls apart over price tag
Unacademy and upGrad—two big names in Indian edtech—were in talks for months about a potential acquisition, but it's officially off.
The main reason? They just couldn't agree on how much Unacademy is worth.
upGrad was valuing Unacademy at $300-400 million, way below its earlier peak during the funding boom, and that gap proved too big to bridge.
What was the plan?
If things had worked out, Unacademy's investors would have gotten a minority stake in upGrad (which sees itself at a $2 billion valuation).
The focus would've been on Unacademy's core test-prep business, leaving out most other parts of the company.
But as upGrad co-founder Ronnie Screwvala explained, the conversation ended due to valuation differences.
Why does this matter?
This isn't just about two companies—it's a sign of how tough things are for edtech right now.
With pandemic demand fading and valuations dropping fast, even giants like Unacademy are making cuts and narrowing their focus.
Both companies will now have to figure out their next moves solo in a market that's getting more challenging by the day.