UpGrad, led by Ronnie Screwvala, is in advanced talks to acquire the core test-preparation business of Unacademy. The deal is valued at approximately $300-400 million (₹2,800–₹3,500 crores), which could soon be finalized within the next three weeks, according to Money Control reports.
This acquisition could be one of the most strategic shifts in the online education industry since the post-pandemic funding boom. This deal would allow UpGrad to set a strong foothold in the schooling segment till class 12 and the competitive exam segment, which includes preparations for JEE, NEET, and UPSC.
A strategic move
The deal does not include the entire Unacademy operation but a significant part of the test-preparation segment. However, Unacademy’s new language learning app, AirLearn, will be a separate, independent entity.
This move comes in with a recent leadership shift in Unacademy. In September, Sumit Jain was appointed as the CEO of the test-preparation division. Co-founders Gaurav Munjal and Roman Saini would lead the new AirLearn venture, focusing on the global language market.
This deal would help Unacademy to gather a significant amount of funds, which would allow them to invest in their new platform, AirLearn, and these funds would save them from burning excess cash in their test-preparation arm.
Also Read | BHEL receives a deal worth ₹6,650 crores from NTPC; What does this mean for India’s power sector?
Market correction and consolidation
The $300-$400 million valuation represents a stark market correction, which is a sharp contrast to Unacademy’s peak valuation of $3.44 billion in August 2021.
UpGrad recently announced it had achieved EBITDA profitability for FY25, giving it a stable financial base from which it is able to make such an aggressive acquisition. The purchase would not only grant UpGrad access to Unacademy's massive user base but also its extensive network of offline learning centres, a hybrid model UpGrad has been actively exploring.
