Indian edtech firm upGrad has signed a term sheet to acquire rival Unacademy in a 100% all-stock transaction, marking a significant consolidation move in India’s online education sector. The proposed deal will be executed through a share-swap arrangement, where Unacademy’s existing shareholders will receive equity in upGrad instead of cash.

Key Highlights

• upGrad signs term sheet to acquire Unacademy in a 100% share-swap deal.
• Unacademy shareholders will receive equity in upGrad instead of cash.
• Combined entity could become one of India’s largest online learning platforms.

The acquisition was confirmed by founders of both companies, with upGrad chairman Ronnie Screwvala and Unacademy co-founder Gaurav Munjal announcing the development publicly. However, the final valuation of the deal has not been disclosed and will only be revealed once the transaction is completed and regulatory filings are made.

As part of the agreement, Munjal is expected to continue as CEO of Unacademy, overseeing the platform’s product development and growth strategy after the acquisition. The integration is aimed at strengthening the combined entity’s presence across test preparation, higher education, and professional upskilling segments.

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Industry analysts view the deal as part of a broader reset in India’s edtech sector, which experienced rapid growth during the pandemic but has since faced slowing demand, funding constraints, and operational restructuring. The merger could help both companies pool resources, improve operational efficiency, and expand offerings across domestic and global markets.

Earlier discussions between the two firms reportedly considered a valuation in the $300–$400 million range, significantly lower than Unacademy’s peak valuation of about $3.4 billion in 2021, reflecting the ongoing correction in the edtech ecosystem.

If finalized, the acquisition would create one of the largest consolidated platforms in India’s digital learning space, positioning the combined company to compete more effectively amid intensifying competition and evolving demand for online education and upskilling services.