Archive · 7 Nov 2025
UpGrad in Talks to Acquire Unacademy's Test-Prep Business Amid Edtech Consolidation
India's online education companies, like upGrad and Unacademy, are going through big changes.
During the pandemic, online learning was very popular, and companies grew quickly.
Now, as things return to normal, some companies are finding it hard to make money, and their value has gone down a lot.
So, companies are starting to buy each other to become stronger together.
upGrad might be buying a part of Unacademy that helps students prepare for tests.
This is happening because investors are being more careful about where they put their money.
Even though online education is still important, companies need to show they have a solid plan to make money.
Buying other companies is one way to do this and make the business more stable for the future.
India's edtech sector is undergoing consolidation with companies like upGrad reportedly in talks to acquire Unacademy's test-prep business.
This trend is driven by a 'reset' in valuations and a shift from pandemic-era demand to a need for sustainable business models.
Investors have become cautious due to uncertain monetization and slower growth, leading to a decline in venture participation.
Segments such as upskilling and competitive exam preparation continue to attract interest due to clearer revenue visibility.
The proposed deal highlights a significant correction in edtech valuations and positions M&A as a viable exit strategy.
- Who
- Temasek-backed upGrad and Unacademy
- What
- UpGrad is reportedly in advanced talks to acquire Unacademy's core test-prep business, reflecting broader consolidation and valuation resets in India's edtech sector.
- When
- The current reports of talks are recent, with a term sheet expected within three weeks, and the market correction has been ongoing for the past two years.
- Where
- India's edtech sector
- Why
- The edtech sector is experiencing a reset after the pandemic boom, with investors becoming cautious. Consolidation is seen as a path to sustainability, clear revenue visibility in segments like upskilling and exam prep, and a way to address sharply corrected valuations.
UpGrad
Unacademy
Strategic Rationale
UpGrad
UpGrad aims to fill gaps in its offerings and enhance business sustainability through consolidation, potentially strengthening its position in the market.
Unacademy
Unacademy, facing a valuation reset and reduced investor interest, is exploring consolidation as a viable path for investors and potentially for the company's future.
Valuation Adjustment
UpGrad
UpGrad is negotiating an acquisition that reflects a significant decrease from previous sector valuations, indicating a market recalibration.
Unacademy
Unacademy's potential sale price of around $400 million is less than half of its total raised capital, highlighting the sharp correction in edtech valuations.
- Potential Acquisition Price
- Around $400 million
- Unacademy's Total Raised Capital
- Over $900 million
- Industry Trend
- Consolidation and M&A in India's edtech sector
- Market Context
- Post-pandemic reality check for online-only education models
- Investor Sentiment
- Cautious, with focus on sustainable business trajectories
- Attractive Segments
- Upskilling and competitive exam preparation
Sources
UpGrad in talks to acquire Unacademy in $300–400 million deal: Report
UpGrad in talks to acquire Unacademy’s test-prep business valued at $300–400 million: Report
Mint Explainer | Why upGrad’s Unacademy deal is more about balance sheet than classrooms
