In one of the most telling signals of the edtech sector’s correction, Unacademy is set to be acquired by upGrad in an all-stock deal valued at ₹2,055 crore-marking a sharp drop of over 90% from its 2021 peak valuation. The transaction, currently in its final stages, reflects how dramatically market dynamics have shifted over the past few years.
Under the deal structure, Unacademy shareholders will receive approximately 0.12 shares of upGrad for each share they hold. While upGrad continues to be valued at around ₹17,000 crore (approximately $1.8 billion), the acquisition price is notably lower than earlier discussions, which had placed Unacademy’s valuation between $300–400 million.
Despite the steep valuation cut, the deal is not without strategic merit. Unacademy still holds over $100 million in cash reserves, making it an attractive acquisition target. Additionally, its AI-led language learning vertical, Airlearn, will remain within the combined entity, signaling continued focus on innovation and future growth areas.
Operationally, Unacademy has taken significant steps to improve its financial health. The company reduced its cash burn from over ₹1,400 crore in FY21 to around ₹200 crore in FY24, with several business verticals turning contribution-margin positive. However, revenue pressures persist, with a 16% year-on-year decline reported in FY25.
For upGrad, the acquisition aligns with its broader expansion strategy as it eyes a potential IPO by 2027. More broadly, the deal underscores a larger trend-the shift from hyper-growth to sustainability in India’s edtech landscape.
