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upGrad completes all-stock acquisition of Unacademy

upGrad completes all-stock acquisition of Unacademy

Money Moves

Deal values the edtech company at just over $200 million, about 94% below its 2021 peak of $3.44 billion

Today: Acquisition closes

Overview

Updated 3 hours ago

Unacademy, once one of India's most valuable edtech startups, is now part of rival upGrad. The all-stock deal closed September 1, 2026, at a valuation just over $200 million, about 94% below Unacademy's $3.44 billion peak in 2021.

The acquisition folds Unacademy's test-prep business, medical-exam platform PrepLadder, creator-tools unit Graphy, and language app Airlearn into upGrad. Munjal stays on as Unacademy's chief executive; angel investors were cashed out, while other shareholders received upGrad stock. The deal caps a reset for Indian edtech, where pandemic-era valuations collapsed and rival Byju's entered insolvency in 2024.

Why it matters

A top Indian edtech startup sold at 94% below its peak, and its rival now owns one of the country's largest test-prep platforms.

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Key Indicators

$206M (₹1,955 crore)
Acquisition value
All-stock deal valuing Unacademy Group at just over $200 million at closing.
94%
Decline from peak valuation
Unacademy peaked at $3.44 billion in August 2021.
$3.44B
Peak valuation (August 2021)
Set during a $440 million Series H raise.
$880M
Total funding raised
Across 13 rounds from SoftBank, Tiger Global, General Atlantic, and others.
₹900 crore (~$95M)
Cash on balance sheet at close
Cash Unacademy brought to the combined group.
₹400 crore (~$42M)
Annual revenue
Unacademy Group's topline at closing; most business lines near profitability.
10M
Airlearn learners
Language app serves users in 150+ countries; its ownership may be decided within months.

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People Involved

Organizations Involved

Timeline

July 2015 September 2026

9 events Latest: Today
Tap a bar to jump to that date
  1. Acquisition closes

    Today Deal

    upGrad completes the all-stock acquisition, valuing Unacademy Group at just over $200 million.

  2. CCI clears the deal

    Regulatory

    India's antitrust regulator approves the share swap and merger.

  3. Term sheet signed

    Deal

    upGrad and Unacademy sign a term sheet for an all-stock acquisition after earlier talks failed.

  4. Airlearn funding explored

    Strategy

    Munjal explores external funding for Airlearn, then drops the plan as upGrad talks advance.

  5. Byju's enters insolvency

    Industry

    Rival Byju's, once valued at $22 billion, enters insolvency proceedings after defaulting on debt.

  6. Demand collapse hits Unacademy

    Restructuring

    Unacademy begins major layoffs as online-learning demand falls after lockdowns end.

  7. Peak valuation of $3.44 billion

    Funding

    Unacademy raises $440 million at a $3.44 billion valuation, its peak.

  8. Unacademy becomes a unicorn

    Funding

    SoftBank leads a $150 million round, valuing Unacademy at $1.45 billion.

  9. Unacademy is founded

    Company

    Gaurav Munjal, Roman Saini, and Hemesh Singh launch a test-prep YouTube channel that becomes Unacademy.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

January 2019 - November 2023

WeWork's fall (2019-2023)

SoftBank pushed WeWork to a $47 billion valuation in January 2019. Its IPO collapsed that September as investors balked at losses, and the company filed for Chapter 11 in November 2023.

Then

Lenders took control of WeWork after SoftBank wrote off billions.

Now

WeWork became shorthand for the SoftBank-era growth-at-any-cost model and its repricing.

Why this matters now

Unacademy raised from the same investor playbook; its $3.44 billion peak and $206 million sale follow the pattern.

March 2021 - July 2024

Byju's collapse (2021-2024)

Byju's raised more than $5 billion and hit a $22 billion valuation in March 2021, spending heavily on acquisitions including Aakash and WhiteHat Jr. When demand fell, it defaulted on its loans and lost control of its accounts.

Then

India's National Company Law Tribunal admitted an insolvency petition against Byju's in July 2024.

Now

The collapse reset investor expectations for Indian edtech, setting the stage for sales like Unacademy's at a fraction of peak value.

Why this matters now

Byju's was the biggest casualty of the same boom-bust cycle that pushed Unacademy to sell at 94% below its peak.

July 2024

2U bankruptcy (2024)

2U, the U.S. company behind edX and university degree partnerships, filed for Chapter 11 bankruptcy in July 2024. It had ridden pandemic enrollment surges, then watched demand evaporate while carrying billions in debt.

Then

2U handed control to lenders, wiped out shareholders, and continued operating with less debt.

Now

The case showed the post-pandemic edtech crash was global, hitting both Indian test-prep and Western online degree programs.

Why this matters now

It mirrors Unacademy's arc: rapid pandemic growth, a demand cliff, and a final outcome far below the peak.

Sources

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