India’s edtech sector may be heading toward another major consolidation. upGrad has signed a term sheet to acquire rival learning platform Unacademy in an all-stock transaction, marking a significant step in the evolving online education landscape.
Under the proposed deal structure, Unacademy’s co-founder Gaurav Munjal will continue to lead the company as CEO. The agreement signals that while ownership may change, the operational leadership and product direction of Unacademy will remain largely intact.
Announcing the development on X, upGrad chairman Ronnie Screwvala said the acquisition aligns with upGrad’s broader vision of building an integrated lifelong learning ecosystem. According to Screwvala, the combination could strengthen upGrad’s presence across the education spectrum-from K-12 learning to professional upskilling and continuous education.
Munjal also confirmed that both companies have signed a term sheet for the acquisition through a 100% share swap arrangement. The final valuation of the deal has not been disclosed and will be revealed only after the transaction closes.
Over the past year, Unacademy has undertaken several strategic steps to streamline its operations. These include consolidating company-run offline centres with franchise partners and executing a ₹50 crore ESOP buyback programme, in which nearly 40% of former employees participated. The company currently holds more than $100 million in cash reserves.
Unacademy has also been expanding its global ambitions through Airlearn, its first international product. The platform is reportedly gaining traction in markets such as the United States, the United Kingdom, Germany and Canada.
If the deal closes successfully, the merger could signal a new phase of consolidation in India’s edtech sector as companies focus on scale, sustainability and global expansion.
