Mumbai: upGrad has signed a term sheet to acquire rival Unacademy through an all-stock transaction, marking a significant consolidation move in India’s online education sector.
The agreement will be executed through a 100% share swap, according to announcements made by Ronnie Screwvala and Gaurav Munjal in separate posts on X. The final valuation of the transaction will be disclosed once the deal is completed and the necessary regulatory filings are finalised.
As part of the arrangement, Munjal will continue to serve as CEO of Unacademy, focusing on strengthening the company’s online education offerings.
The proposed acquisition follows months of discussions between the two companies. Earlier negotiations reportedly considered valuing Unacademy at around $300–400 million, although talks initially slowed due to differences over valuation and deal structure.
Screwvala said the combination would strengthen upGrad’s integrated learning ecosystem, which spans segments ranging from K–12 education to higher education and professional upskilling.
The announcement comes as Unacademy continues to implement strategic changes aimed at improving efficiency and sharpening its focus on core digital offerings. The company has been transitioning from company-operated offline centres to a franchise-led model, a move intended to reduce operational costs while expanding its reach.
In his post, Munjal highlighted developments at the company over the past year, including the consolidation of company-run centres with franchise partners, a ₹50 crore ESOP buyback, and the growth of its language-learning product Airlearn, which has gained traction in markets such as the United States, United Kingdom, Germany and Canada. He also noted that Unacademy currently holds cash reserves of more than $100 million.
The edtech firm has also seen leadership restructuring in recent months. Earlier this year, Munjal and co-founder Roman Saini stepped back from day-to-day operational responsibilities, with Sumit Jain taking charge as chief executive of the company’s core test-preparation business.
The companies have agreed to include a break fee clause should the transaction fail to close, signalling both sides’ commitment to completing the proposed merger. The deal, if finalised, would bring together two prominent players in India’s edtech sector at a time when the industry is undergoing consolidation and strategic restructuring.
