UpGrad calls off Unacademy deal, clouding Gaurav Munjal's start-up plans
What's the story
The failure of months-long acquisition talks between Unacademy and upGrad has left the future of a new start-up by Unacademy co-founders Gaurav Munjal and Roman Saini in limbo. The duo was reportedly looking to raise around $17 million for their venture from Peak XV Partners, Blume Ventures, and several other prominent founders. However, with the collapse of the acquisition talks, these plans may be delayed.
Strategic shift
Munjal's decision to stay back at Unacademy
Munjal, who had stepped down from his day-to-day operational role at Unacademy earlier this year, has now decided to stay back and run the company. This decision comes in light of the stalled acquisition talks with upGrad. The move also means that any investment into his and Saini's new start-up will now be delayed. Details about the start-up's business model, valuation, and launch timeline remain unclear.
Acquisition aborted
UpGrad's acquisition of Unacademy called off over valuation concerns
Ronnie Screwvala's upGrad recently held talks to acquire Unacademy at a projected valuation of $300-400 million—a massive drop from its $3.4 billion peak. While the proposed deal involved Unacademy investors taking a minority stake in upGrad (which valued itself at $2 billion), the talks collapsed. As per reports, the parties failed to reach an agreement due to conflicting views on valuation and deal structure.
Financial outlook
Unacademy's financial standing and future plans
Unacademy currently has around ₹1,100 crore in cash on its balance sheet. Following the collapse of the upGrad talks, the company is expected to decide its next course of action in the coming days. Munjal's decision comes amid a wider trend of senior founders and executives leaving India's edtech sector to start new ventures outside their original companies.