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Unacademy Completes $200 Million upGrad Deal After Valuation Reset
Unacademy is an Indian company that helps people learn online.
It has now been acquired by another education company called upGrad.
The deal was worth a little more than $200 million.
This was much less than Unacademy’s earlier valuation of $3.44 billion.
Its CEO, Gaurav Munjal, openly acknowledged the large difference.
He said Unacademy still had money and could have continued on its own.
He said the leaders chose upGrad because they thought the partnership would create better opportunities.
Unacademy’s founders also said the company helped many students and educators learn and work online.
The deal gives Unacademy investors shares in upGrad rather than a cash payment.
upGrad completed its all-stock acquisition of Unacademy for slightly more than $200 million.
The deal values Unacademy far below its 2021 peak valuation of $3.44 billion; reports describe the decline as more than 90% or 94%.
CEO Gaurav Munjal said Unacademy had around ₹400 crore in topline revenue and ₹900 crore in cash, allowing it to continue independently.
Munjal said the sale was not forced and reflected his belief that working with Ronnie Screwvala and upGrad offered a more exciting path.
Unacademy’s founders highlighted its influence on online education, educators, competitive-exam preparation and products such as Airlearn.
- Who
- upGrad acquired Unacademy; Unacademy CEO and co-founder Gaurav Munjal and co-founder Roman Saini reflected on the transaction.
- What
- upGrad completed an all-stock, 100% share-swap acquisition of Unacademy valued at just over $200 million.
- Where
- The transaction involves Indian education companies; Unacademy was founded in India and upGrad operates in the education sector.
- When
- The acquisition was announced as completed on September 1, 2026, six years after Unacademy became a unicorn, according to the articles.
- Why
- Munjal said the companies believed the combination would create a better path for the education ecosystem, while upGrad sought a stronger position in online test preparation.
Valuation and Business Challenges
Strategic and Educational Impact
Meaning of the sale price
Valuation and Business Challenges
The acquisition price was a fraction of Unacademy’s $3.44 billion peak valuation, reflecting a steep post-pandemic correction and weaker financial returns than expected at the peak.
Strategic and Educational Impact
Munjal said he was proud of what the team built between the two valuations and argued that Unacademy’s impact should not be measured only by its exit price.
Reason for accepting the deal
Valuation and Business Challenges
Unacademy faced a post-Covid slowdown as students returned to offline classrooms, alongside spending cuts, layoffs and the scaling back of some businesses.
Strategic and Educational Impact
Munjal said Unacademy had around ₹900 crore in cash and was not forced to raise funds or find a buyer; he said the upGrad combination appeared more exciting and better for the ecosystem.
Assessment of Unacademy’s legacy
Valuation and Business Challenges
The company did not fully capture the economic value of its mission, and its valuation and revenue later declined from earlier highs.
Strategic and Educational Impact
Its founders said the platform expanded online exam preparation, helped create prominent educators, hosted up to 1 lakh live classes a month during peak Covid, and influenced the wider education sector.
Key facts
- Acquisition value
- Slightly more than $200 million
- Transaction structure
- 100% all-stock share swap
- Peak valuation
- $3.44 billion in 2021
- Unacademy financial position
- Around ₹400 crore in topline revenue and ₹900 crore in cash, according to Munjal
- FY25 performance
- Revenue fell 16% to ₹826.2 crore, while net loss narrowed to ₹435.4 crore from ₹631 crore
- Regulatory approval
- The Competition Commission of India cleared the deal in July
- Employee liquidity
- Unacademy conducted multiple employee stock ownership plan buybacks, including a ₹50 crore buyback in February
Quotes
Gaurav Munjal
Unacademy CEO who announced the completion of UpGrad's acquisition
“When @RomanSaini and I started Unacademy with @hemezh and @sumjain, the mission was to democratise education. We didn't end up capturing all the economic value of that mission. But we changed what online education looks like in this country, and the products we built became the template for the entire sector.”
livemint.com
“The journey wasn’t easy. It never is. I remember once being up all night making videos just because our views were down and I didn’t want a month where we were not growing. Another time, Gaurav and I flew to China to meet an investor who didn’t even show up for the meeting.”
theprint.in
Sources
'We raised at a peak, but sold at a fraction': Unacademy CEO on $3.44 bn to $200 mn UpGrad deal
Unacademy acquired by upGrad in $200 million deal. Co-founder reflects on the journey
Unacademy’s $3.44 billion valuation to $200 million acquisition by upGrad: Gaurav Munjal reflects on journey
Unacademy Acquired By UpGrad For Over $200 Million After Valuation Drops From Unicorn Peak
upGrad completes Unacademy acquisition at just over $200 million, marking steep valuation reset
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