UpGrad Set to Close Unacademy Acquisition Within Three Weeks in ₹1,955 Crore All-Stock Deal

India's most closely watched edtech consolidation is now on the final stretch. UpGrad, the online higher education platform founded by Ronnie Screwvala, is set to close its acquisition of Unacademy within three weeks, with the deal now valued at approximately ₹1,955 crore — a marginal revision from the ₹2,055 crore figure reported when the transaction was announced in May.

The deal has already cleared its most critical regulatory hurdle. The Competition Commission of India approved the acquisition by UpGrad Education Private Limited and Sorting Hat Technologies Private Limited — the parent company of Unacademy — removing the final antitrust obstacle for what is the first acquisition between two major Indian edtech unicorns.

How the Deal Came Together

The road to closure was anything but straight. Earlier talks between the two companies had collapsed over valuation differences, but both sides eventually signed a term sheet in March 2026 for a 100% share-swap transaction, reviving discussions on a revised structure.

Unacademy co-founder and CEO Gaurav Munjal confirmed the term sheet signing in a post on X, saying the companies had agreed to a 100% share-swap deal and that the final valuation would not be disclosed until the transaction closes.

The deal is structured entirely as a stock transaction — no cash changes hands between the two companies. Instead, Unacademy shareholders will receive UpGrad shares in exchange for their Unacademy stake.

The Numbers Behind the Deal

The ₹1,955 crore valuation is a stark number. Unacademy raised about $880 million to date, including a $440 million round in August 2021 led by Temasek at a peak valuation of $3.4 billion. The acquisition values it at over 90% below that peak — a write-down that reflects both the structural correction in India's edtech sector and the specific challenges Unacademy has faced since the pandemic boom faded.

Unacademy reported operating revenue of ₹702 crore in FY25, a 16% drop year-on-year, with projections for 2026 suggesting a further decline to around ₹400 crore.

What makes the deal financially attractive for UpGrad, however, is what sits on Unacademy's balance sheet. Unacademy's cash reserves, estimated at over $100 million — roughly ₹900–950 crore — are expected to strengthen UpGrad's balance sheet post-merger. In effect, UpGrad is acquiring a shrinking but still cash-rich business at a fraction of what investors once paid for it.

What Happens After the Merger

Post-acquisition, Unacademy will retain its distinct brand identity and current leadership, with Gaurav Munjal remaining as CEO within the broader UpGrad structure. The combined entity is expected to boost UpGrad's annual revenue by approximately ₹500 crore.

Strategically, the merged company is expected to focus more on enterprise B2B offerings, global education services, and AI-led learning solutions — areas seen as more sustainable than the high-growth consumer test-prep model that defined both platforms during the pandemic era.

For the 11-month period ending February 2026, UpGrad posted a provisional net profit of ₹38.8 crore on an operating revenue of ₹1,531.7 crore — a significant turnaround that underpins its ability to absorb and integrate Unacademy without financial strain.

The Broader Edtech Reckoning

The deal is the most visible symbol of where India's edtech sector now stands. Byju's, once the country's most valuable startup, has seen its valuation written down to effectively zero and entered insolvency proceedings in September 2024. Meanwhile, Physics Wallah — once seen as an underdog — has turned profitable and continued expanding.

Unacademy's journey — from a YouTube channel started by Gaurav Munjal in 2015, to a $3.4 billion unicorn in 2021, to a ₹1,955 crore acquisition target in 2026 — is the most concise summary of what the Indian edtech boom built, and what the correction took away. The UpGrad merger does not erase that arc, but it does give the platform a second chapter — leaner, less glamorous, and arguably more grounded than the first.