Deal values the edtech company at just over $200 million, about 94% below its 2021 peak of $3.44 billion
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Overview
Updated 3 hours agoUnacademy, 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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People Involved
Organizations Involved
India's largest test-prep platform, covering UPSC, JEE, NEET, GATE, and other competitive exams.
Higher-education platform offering degree programs, study-abroad services, and enterprise upskilling.
India's antitrust regulator, which reviews mergers and acquisitions for competitive harm.
Once India's most valuable startup, valued at $22 billion, now in insolvency.
Timeline
July 2015 September 2026
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Acquisition closes
Today DealupGrad completes the all-stock acquisition, valuing Unacademy Group at just over $200 million.
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CCI clears the deal
RegulatoryIndia's antitrust regulator approves the share swap and merger.
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Term sheet signed
DealupGrad and Unacademy sign a term sheet for an all-stock acquisition after earlier talks failed.
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Airlearn funding explored
StrategyMunjal explores external funding for Airlearn, then drops the plan as upGrad talks advance.
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Byju's enters insolvency
IndustryRival Byju's, once valued at $22 billion, enters insolvency proceedings after defaulting on debt.
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Demand collapse hits Unacademy
RestructuringUnacademy begins major layoffs as online-learning demand falls after lockdowns end.
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Peak valuation of $3.44 billion
FundingUnacademy raises $440 million at a $3.44 billion valuation, its peak.
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Unacademy becomes a unicorn
FundingSoftBank leads a $150 million round, valuing Unacademy at $1.45 billion.
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Unacademy is founded
CompanyGaurav 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.
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.
Lenders took control of WeWork after SoftBank wrote off billions.
WeWork became shorthand for the SoftBank-era growth-at-any-cost model and its repricing.
Unacademy raised from the same investor playbook; its $3.44 billion peak and $206 million sale follow the pattern.
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.
India's National Company Law Tribunal admitted an insolvency petition against Byju's in July 2024.
The collapse reset investor expectations for Indian edtech, setting the stage for sales like Unacademy's at a fraction of peak value.
Byju's was the biggest casualty of the same boom-bust cycle that pushed Unacademy to sell at 94% below its peak.
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.
2U handed control to lenders, wiped out shareholders, and continued operating with less debt.
The case showed the post-pandemic edtech crash was global, hitting both Indian test-prep and Western online degree programs.
It mirrors Unacademy's arc: rapid pandemic growth, a demand cliff, and a final outcome far below the peak.
