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The transaction is more than 90% below Unacademy’s peak valuation of $3.44 billion in 2021.
UpGrad, led by Ronnie Screwvala, has completed the acquisition of Unacademy. Unacademy co-founder and CEO Gaurav Munjal confirmed the completion of the deal through a social media post on September 1, 2026. The two companies had been in discussions over the acquisition for several months.
The transaction has been completed entirely through a share-swap arrangement. According to reports, the final transaction value has been set at around INR 1,955 crore, which translates to slightly more than $200 million. Existing Unacademy investors will receive shares in UpGrad. Gaurav Munjal will continue as the CEO of Unacademy following the acquisition.
Deal Completed at More Than 90% Below $3.44 Billion Peak Valuation
Unacademy had reached a valuation of around $3.44 billion in 2021, when the company was among India’s leading edtech unicorns. However, following the pandemic, the funding and valuation environment in the edtech sector changed significantly. Companies began focusing more on profitability and sustainable business models rather than rapid expansion.
After the completion of the deal, Gaurav Munjal said that the company was acquired at a much lower valuation compared with the peak valuation at which it had raised funding. He acknowledged the gap openly and said that Unacademy had played an important role in changing the way online education was delivered in India.
Acquisition Not Driven by Cash Shortage
According to Gaurav Munjal, Unacademy did not take the decision because of financial pressure or a shortage of cash. He said the company has a topline of around INR 400 crore, while most of its businesses are profitable or close to profitability. The company also has around INR 900 crore in cash.
This meant that Unacademy had the option to continue operating independently. However, after discussions with UpGrad founder Ronnie Screwvala and considering the potential combination of the two businesses, the company decided to move forward with the deal. Munjal said the decision was not driven only by financial considerations but also by the larger opportunity the combination could create for the education ecosystem.
UpGrad Gets Strong Entry into Online Test Preparation
The acquisition will give UpGrad a stronger presence in the online test preparation segment. Unacademy is known for preparing students for competitive examinations such as UPSC, JEE, NEET and GATE.
Unacademy’s test preparation business will now be combined with UpGrad’s existing higher education, professional upskilling, certification and study-abroad businesses. In information submitted to the Competition Commission of India (CCI), UpGrad had also stated that the combination would give it entry into the online test preparation segment, where it previously had limited presence.
CCI Approval Received in July
The regulatory process for the deal has also been completed. The Competition Commission of India (CCI) approved the acquisition of certain shareholding in Sorting Hat Technologies and its subsequent merger with UpGrad Education on July 7, 2026. Sorting Hat Technologies operates Unacademy.
The discussions between the two companies progressed through several stages. According to reports, talks around the acquisition began in November 2025 and faced delays due to differences over valuation. The companies later signed a term sheet for the all-stock transaction in March 2026.
Unacademy Built a Strong Identity in Online Education
Unacademy was founded by Gaurav Munjal, Roman Saini, Hemesh Singh and Sumit Jain. The company played an important role in popularising online education for competitive examination preparation on a large scale in India.
According to Munjal, videos by Unacademy educators have collectively crossed more than 10 billion views on YouTube. The company also launched Airlearn in the language-learning segment, which, according to Munjal, became one of the three most-downloaded language-learning apps globally in less than two years.
During its journey, the company also completed four ESOP buybacks for employees. Munjal said these transactions created value for employees, although the financial outcome for founders and investors was not as strong as the company’s peak valuation had suggested.
A New Phase for India’s Edtech Sector
The combination of UpGrad and Unacademy reflects the growing consolidation in India’s edtech market. While Unacademy has a strong presence in competitive examinations and test preparation, UpGrad is known for its presence in higher education, professional skilling and career-focused learning.
The combination will give UpGrad an opportunity to reach new student segments and bring different areas of education under a larger platform. For Unacademy, the acquisition marks a new phase in its journey from an independent startup to becoming part of a larger education group.
