UpGrad completes acquisition of Unacademy in deal valued slightly above $200 million

Unacademy has completed its acquisition by UpGrad in a deal valued at slightly above $200 million, reflecting a major decline from the company’s unicorn valuation six years after it entered the billion-dollar startup club.Unacademy co-founder and CEO Gaurav Munjal openly addressed the difference between the company’s earlier valuation and the acquisition price. He said the company had raised funds during a peak period but exited at a much lower valuation, adding that he did not want to hide the reality of the transaction.upGrad To Acquire Unacademy In All-Stock 100% Share Swap Deal, Gaurav Munjal To Remain CEO The deal highlights the broader correction faced by India’s edtech sector after years of aggressive fundraising and high valuations. However, Munjal said Unacademy entered the acquisition process from a position of financial stability rather than pressure.According to Munjal, the company had revenue of around ₹400 crore, with most business segments either profitable or close to profitability. It also held around ₹900 crore in cash reserves, allowing it to continue operating independently if required.He said the decision to merge with UpGrad followed discussions with founder Ronnie Screwvala and a belief that the combination would create greater opportunities for the education sector. Company highlights impact beyond valuationMunjal pointed to Unacademy’s broader contribution to online education, including the rise of popular educators whose YouTube content collectively crossed 10 billion views. He also highlighted Airlearn, the company’s language-learning platform, which became one of the world’s top three most downloaded language-learning applications within two years.While Unacademy did not fully capture the financial value of its original mission to democratise education, Munjal said the company changed the structure of online learning in India and influenced the wider industry.The acquisition follows four employee stock ownership plan (ESOP) buybacks conducted by Unacademy. Munjal said these initiatives helped create value for employees, even though founders and investors did not achieve the same level of financial returns expected during the company’s peak valuation phase.

upGrad completes Unacademy acquisition for just over million

Unacademy has completed its acquisition by UpGrad for just over $200 million. Gaurav Munjal said, "We raised at a peak, but sold at a fraction of that."