Indian edtech firm Unacademy has signed a term sheet with upGrad for its acquisition in a 100 percent share swap deal. The announcement was made by Unacademy co-founder Gaurav Munjal in a post on X.
Munjal said that both companies have agreed not to disclose the valuation until the deal officially closes and the required documents are filed. Once the transaction is completed, the details will become public.
The development comes after months of discussions between the two edtech companies. Reports about a possible acquisition had been circulating since late 2025. Earlier reports suggested that upGrad was valuing Unacademy at around $300 million.
Unacademy was once among India’s most valuable edtech startups. The company reached a valuation of about $3.4 billion in August 2021 during the pandemic-led edtech boom. However, the sector has faced a slowdown over the past few years as demand for online learning platforms declined and companies struggled with profitability.
In his post, Munjal highlighted several changes the company has made over the past year to improve its focus and operations. Unacademy consolidated its company-operated offline centres with franchise partners in order to focus more on building online education products. The company also completed a ₹50 crore ESOP buyback, with nearly 40 percent of former employees participating in the program.
He added that the company currently has cash reserves of more than $100 million.
Despite the acquisition, Munjal said he will continue to lead the company as co-founder and CEO. His focus will remain on building strong online learning products for students in India as well as international markets.
The proposed merger would bring together two major players in India’s edtech ecosystem. While Unacademy built its reputation in competitive exam preparation and K12 education, upGrad has established itself in professional upskilling, higher education programs, and lifelong learning.
If the acquisition closes, the combined entity aims to build a broader education platform that spans the entire learning journey. This would include K12 education, competitive exam preparation, professional upskilling, and lifelong learning programs.
