In a major development in India’s edtech sector, upGrad has signed a term sheet to acquire rival Unacademy through an all-stock deal, marking a significant consolidation move in the industry.
The agreement, announced in March 2026, brings together two leading players that have followed different growth strategies, as the sector adjusts after the pandemic-driven surge.
The transaction will be structured as a 100% share-swap deal, where Unacademy’s investors will receive equity in upGrad instead of cash. This approach reflects the current funding environment, where companies are focusing more on sustainability and efficient use of capital rather than rapid expansion. The deal is also expected to allow Unacademy’s leadership, including CEO Gaurav Munjal, to remain involved in the combined entity.
The acquisition aligns two complementary business models. upGrad has built its presence in higher education, upskilling, and study-abroad programmes, while Unacademy has focused on online test preparation and competitive exam coaching. Together, the combined platform aims to serve a wider range of learners across segments.
The deal comes at a time when India’s edtech sector is going through consolidation and restructuring. After a period of rapid growth and high valuations, companies are now facing slower demand, tighter funding, and increased pressure to achieve profitability. This has led to more mergers and partnerships aimed at improving efficiency and reducing costs.
Unacademy, which was valued at around $3.44 billion in 2021, has seen a valuation reset due to broader industry challenges. Reports suggest that the current deal discussions involve a significantly lower valuation, reflecting changing investor sentiment.
For upGrad, the acquisition supports its long-term strategy of growth through selective deals, while maintaining a focus on profitability and potential public listing plans. The addition of Unacademy is expected to strengthen its scale and market presence.
Overall, the transaction reflects a shift in India’s edtech ecosystem, where consolidation is becoming a key trend and reshaping the competitive landscape.
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