Archive · 2 Sep 2026
upGrad Acquires Unacademy at Sharp Discount Below 2021 Peak
upGrad has bought Unacademy’s parent company using shares rather than only cash.
The deal values Unacademy at just over $200 million.
That is much lower than the $3.44 billion value Unacademy reached in 2021.
Unacademy’s brands, including PrepLadder, Graphy and Airlearn, will continue operating separately.
Gaurav Munjal will keep running Unacademy, while Roman Saini will advise the business.
The companies say Unacademy could have continued independently but chose a larger combination with upGrad.
Together, they will offer online test preparation, universities, schools, offline centers and job training.
The combined company is being developed with a possible future stock-market listing in mind.
upGrad completed an all-stock acquisition of Unacademy’s parent, Sorting Hat Technologies, at a valuation of just over $200 million.
The price is more than 90% below Unacademy’s $3.44 billion peak valuation in 2021; reports describe the decline as approximately 94%.
Unacademy, PrepLadder, Graphy and Airlearn will retain their brands and operate separately within upGrad Education.
Gaurav Munjal will remain CEO, Roman Saini will become an adviser, and Peak XV Partners’ Shailendra Singh will join the combined entity’s board.
The deal followed nearly 10 months of negotiations and is intended to build a broader education group that could eventually pursue a listing.
- Who
- upGrad Education, led by founder Ronnie Screwvala, acquired Unacademy’s parent Sorting Hat Technologies; Gaurav Munjal remains Unacademy’s CEO.
- What
- An all-stock acquisition combined Unacademy and its subsidiaries with upGrad at a valuation of just over $200 million for Unacademy.
- When
- The deal closed after nearly 10 months of on-and-off negotiations; the Competition Commission of India approved it in July.
- Where
- The transaction involves education businesses operating in India across online test preparation, universities, schools, offline centers and upskilling.
- Why
- The companies aim to create a broader education group and develop the combined entity toward a possible eventual listing.
Strategic Combination Case
Valuation and Performance Concerns
Reason for the deal
Strategic Combination Case
Munjal said Unacademy had around Rs 900 crore in cash, a topline of about Rs 400 crore and mostly profitable or near-profitable businesses, so the decision reflected a more ambitious strategic path rather than a need for capital.
Valuation and Performance Concerns
The acquisition underscores Unacademy’s fall from its $3.44 billion 2021 peak to just over $200 million, alongside reported FY25 losses and a 16% year-on-year decline in operating revenue.
Value of the combined business
Strategic Combination Case
The transaction combines Unacademy’s online test preparation with upGrad’s offline centers, universities, schools and upskilling operations, creating a broader group that could support a future listing.
Valuation and Performance Concerns
People cited in the reports said no single education category may be large enough to support a listing alone, leaving the combined group to show that its multiple businesses can work effectively together.
Future operating choices
Strategic Combination Case
Retaining Unacademy, PrepLadder, Graphy and Airlearn as separate brands may preserve their identities while giving them access to upGrad’s wider education platform.
Valuation and Performance Concerns
The group still faces decisions about how to manage individual businesses, including whether Airlearn should raise external capital or remain within the combined entity.
- Unacademy deal valuation
- Just over $200 million; reports placed the late-stage transaction value at around Rs 1,955 crore.
- Decline from peak
- More than 90% below Unacademy’s $3.44 billion peak valuation in 2021; one report calculated the reduction at about 94%.
- 2021 funding round
- Unacademy raised $440 million in a Temasek-led 2021 round at a $3.44 billion valuation.
- Combined entity valuation
- The share swap valued upGrad at around Rs 18,000 crore, or approximately $1.9 billion.
- Shareholder stake
- Existing Unacademy shareholders will receive an estimated 10–11% of the combined entity and one board seat.
- Leadership
- Gaurav Munjal remains CEO of Unacademy, Roman Saini becomes an adviser, and Shailendra Singh will represent Unacademy shareholders on the board.
- Reported FY25 financials
- Tracxn reported Unacademy operating revenue of Rs 826.2 crore and a loss of Rs 435.4 crore; upGrad reported Rs 1,650 crore in revenue and a Rs 273.7 crore loss.
