UpGrad to acquire Unacademy in $320 million all-stock deal: Report
UpGrad is reportedly close to acquiring Unacademy in an all-stock deal worth $300-320 million—a big drop from Unacademy's $3.4 billion valuation just a few years ago.
If it goes through, UpGrad gets access to about ₹1,200 crore of Unacademy's cash.
Founders' exit, CEO retention among key terms
Unacademy shareholders would get shares in UpGrad (now valued at around $2 billion), with most investors swapping stock instead of getting cash.
The companies, currently in advanced talks, might sign a term sheet soon.
This move comes as India's edtech sector cools down after the pandemic boom—Unacademy's revenue dipped 7% last year, but they managed to cut losses by more than half thanks to serious cost-cutting.
Founders Gaurav Munjal and Roman Saini are expected to exit, while Sumit Jain will likely stay on as CEO for the test-prep business.
Edtech giants merging amid sector slowdown
This is one of the biggest shakeups in Indian edtech right now—two major players combining forces as the industry faces tough times.
If you're following how online learning is changing (or wondering what happens when startups stop burning cash), this one's worth keeping an eye on.