UpGrad to acquire Unacademy in all-stock deal, term sheet signed
What's the story
Edtech giant UpGrad has signed a term sheet to acquire rival Unacademy in an all-stock deal. The announcement was made by both companies' founders, Ronnie Screwvala and Gaurav Munjal, on X. The acquisition will be executed through a 100% share swap, with the transaction's valuation only being disclosed after the deal closes and filings are completed.
Leadership continuity
Munjal to continue as CEO
Screwvala confirmed that Munjal will continue as co-founder and CEO of Unacademy, focusing on creating online education products for learners in India and globally. He said the acquisition would strengthen UpGrad's integrated learning model across segments from K-12 education to lifelong learning and professional upskilling. The companies have also agreed to a break fee if the transaction does not close.
Strategic shifts
Unacademy's recent developments
Munjal highlighted several developments at Unacademy in the last year, including consolidating company-run centers with franchise partners and a ₹50 crore ESOP buyback. He also noted that their language-learning product Airlearn is gaining traction in markets like the US, UK, Germany, and Canada. Despite these changes, Munjal said Unacademy still has cash reserves of over $100 million.
Valuation drop
Unacademy's valuation drop and previous acquisition talks
Munjal had previously said that Unacademy's valuation may have plummeted sharply to under $500 million from $3.5 billion in 2021 when it raised $440 million in a funding round led by Singapore's Temasek Holdings. Before UpGrad, Unacademy was in talks with Kota-based Allen Career Institute for a potential acquisition in December 2024 at an estimated value of around $800 million. However, those negotiations also fell through over differences in valuation.