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upGrad is set to acquire Bengaluru-based edtech firm Unacademy in an all-stock deal valued at around INR 20.6 billion (approximately USD 218 million), according to ET reports. The companies are expected to sign the agreement soon and file for approval with the Competition Commission of India (CCI) in the coming days.
The proposed transaction is among the largest consolidation moves in India’s edtech sector, which has been adjusting to slower growth after the pandemic-driven surge. If completed, the deal would value Unacademy at more than 90% below its peak valuation of USD 3.4 billion in 2021.
Unacademy is expected to have between INR 9 billion and INR 9.5 billion (around USD 94.8 million to USD 100 million) in cash on its books at closing, making it an important factor in the acquisition. The company, which started as a YouTube channel in 2010 and later transitioned into a full edtech platform in 2015, has raised about USD 880 million in total funding. Its largest round of USD 440 million came in 2021 and was led by Temasek.
Temasek, the Singapore-based sovereign wealth fund, is a common investor in both companies, holding stakes in each. upGrad has raised around USD 330 million to date and was last valued at about USD 1.9 billion.
Alongside the acquisition, upGrad is also in discussions to raise an internal funding round of about INR 3.8 billion (approximately USD 39.5 million) from Temasek and its founder Ronnie Screwvala. The funding is expected to support future growth initiatives.
The deal reflects a broader trend of consolidation in the edtech space as companies focus on sustainability and scale. Separately, upGrad has also completed the acquisition of internship and job platform Internshala in an all-stock deal valued at around INR 800 million, expanding its presence in career services.
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