upGrad completes $200M Unacademy acquisition amid valuation reset

Munjal explained his decision to choose the upGrad deal despite having ₹900 crore in cash and the option to continue independently, stating 'We built products that became the template for the Indian education sector. We had ₹900 crore in the bank and every option to keep going alone. We chose this instead, because building it with Ronnie, together with upGrad, is the more ambitious path, not the safer one' as reported by Business Standard. The transaction values the company at roughly one-fifth of its unicorn-era valuation, underscoring the dramatic correction in India's edtech sector since the funding boom. According to The Hindu BusinessLine, Unacademy was valued at nearly $3.4 billion at its peak in 2021, while Munjal had said in December last year that the company's valuation had fallen below $500 million. Despite the lower exit valuation, Munjal expressed pride in the team's achievements, noting that 'We didn't end up capturing all the economic value of that mission. But we changed what online education looks like in this country'. The company had become a unicorn six years ago before the current transaction.

According to The Hindu BusinessLine, Unacademy's revenue fell 16% to ₹826.2 crore in FY25, while its net loss narrowed to ₹435.4 crore from ₹631 crore a year ago. The company also launched a ₹50 crore ESOP buyback in February, demonstrating continued commitment to employee retention despite financial challenges. As per The Economic Times, Munjal pointed out that 'For a company with that financial position, the decision to sell is best understood as a strategic one rather than an emergency transaction'. The acquisition also comes after Unacademy conducted four ESOP buybacks, which Munjal said created real value for employees even as founders and investors did not create as much value for themselves. Since Unacademy was not under pressure to raise money, the company had the time to evaluate the deal thoroughly.

The Competition Commission of India approved the proposed combination on July 7, with the regulator stating the transaction would allow upGrad to enter the online test-preparation segment and broaden the range of learners it serves. The acquisition gives upGrad an entry into online test preparation, adding Unacademy's core business across categories such as UPSC, JEE, NEET and GATE to its existing portfolio of higher education, certification, study abroad and professional upskilling businesses. Founded in 2015 by Munjal, Roman Saini and Hemesh Singh, Unacademy grew from a YouTube channel into a major test-preparation platform. On the other hand, upGrad is best known for its online upskilling and career advancement courses for working professionals, focusing on higher education, professional learning, and career development. This acquisition fills a product gap for upGrad and gives it access to learners early in their education journey, aligning with Screwvala's stated ambition of building a business that can serve people from the school level through higher education and continuing professional development.

Munjal highlighted several key achievements during Unacademy's journey, as reported by ET Now and Business Standard. Videos from educators on Unacademy's platform crossed 100 billion views, demonstrating the platform's significant reach. The company's Airlearn language-learning product became one of the top three most-downloaded language-learning apps in the world in less than two years, with 10 million learners across more than 150 countries. Munjal noted that Unacademy's free platform and its role in creating a generation of celebrity educators were cornerstone achievements in democratizing education. As per The Economic Times, Munjal said 'Unacademy's free platform created a generation of celebrity educators. Educators are a cornerstone of any economy, and they should be celebrated, and our platform enabled that in our country. Their YouTube videos crossed 10 billion views'. Unacademy began as a YouTube channel in 2010 and became a formal edtech platform in 2015, expanding rapidly during the COVID-19 pandemic as demand for online education surged, but later facing challenges as students returned to physical classrooms and competition intensified.

Looking ahead, Munjal expressed confidence about the next phase following the acquisition, as reported by ET Now and Business Standard. He thanked various individuals who supported him during difficult periods, including Shailendra Singh, Deepinder Goyal, Bhavin Turakhia, Sujeet Kumar, Bhavish Aggarwal, Aakrit Vaish, Mukul Arora, Shantanu Rastogi and Karthik Reddy. Munjal concluded by thanking his family and friends, particularly his wife Reema and co-founder Roman Saini, while expressing hope that Unacademy's shareholders would create significant value from the merger. According to The Economic Times, Munjal will continue as co-founder and CEO of Unacademy and focus on building online education products for learners in India and globally. The decision to combine with upGrad came after discussions with UpGrad founder Ronnie Screwvala and a growing belief that combining the businesses could be "a better path for the ecosystem, not just for us." Hemesh Singh, Roman Saini and Gaurav Munjal had left the top positions in the company in a gradual manner starting in June 2024. Together, the two companies will operate across the full span of learning, from competitive exams to higher education, professional upskilling and careers, while continuing to build consumer products for learners globally.