Ronnie Screwvala's Unacademy is Set to Upgrade

Edtech major UpGrad is in talks to acquire Unacademy, a deal that could value the test-prep platform at $300-400 million people familiar with the matter said. The two companies could sign a term sheet within three weeks, according to sources.

Current Status of Unacademy

The potential valuation represents a sharp decline from Unacademy's last publicly known valuation of $3.44 billion in 2021. Sources indicate that under the proposed transaction Unacademy's language-learning app AirLearn would be spun off into a separate entity.



While the core test-preparation business which includes its growing network of offline learning centers would be spun off. The idea is for Upgrade to be sold with Upgrade retaining no stake in AirLearn.

Unacademy's cash burn has declined sharply over the past three years from ₹1,000 crore annually to around ₹100 crore now. According to sources the company now has cash reserves of around ₹1,200 crore making it an attractive buy.