upGrad’s Acquisition of Unacademy: A Significant Move in EdTech

The acquisition of the edtech platform Unacademy by upGrad is in its concluding stages, with sources indicating that the transaction is set to be finalised in the next three weeks. Reports suggest that nearly all institutional investors have finalised the Share Subscription Agreement (SSA), and all angel investors have agreed to the Share Purchase Agreement (SPA), leaving only minor formalities to complete the deal.

According to the latest information, this all-stock transaction is valued at approximately Rs 1,955 crore, slightly lower than the valuation discussed when the agreement was first unveiled earlier this year. Gaurav Munjal, co-founder of Unacademy, will remain as CEO following the merger. Additionally, Airlearn, a language learning platform incubated within Unacademy, will also transition under the upGrad umbrella.

In the wake of this acquisition, upGrad is consolidating Unacademy’s operations and its associated businesses. The headquarters of PrepLadder has recently been relocated from Chandigarh to Bengaluru, and Unacademy, PrepLadder, Airlearn, and Graphy will all function from Bengaluru moving forward.

In a significant development, Unacademy’s existing investors are set to receive one board seat in upGrad once the acquisition is complete, as indicated by sources. The startup Superb has made attempts to obtain comments from both Unacademy and upGrad regarding these changes.

Initially announced earlier this year, this acquisition represents one of the most substantial consolidation efforts within India’s edtech sector. It received approval from the Competition Commission of India (CCI) earlier this month, facilitating its progression to completion. Upon finalisation, the combined entity will unite upGrad’s focus on higher education and upskilling with Unacademy’s expertise in test preparation, medical education, and creator-led learning platforms.

Financially, the paths of these two companies have diverged. Unacademy’s operational revenue fell by 16% year-on-year, reaching Rs 826.3 crore in FY25. Conversely, upGrad noted a provisional profit of Rs 38.8 crore during the 11 months ending February 2026, achieving an EBITDA positive status with an operating revenue of Rs 1,531.7 crore, which points towards a strong performance amidst ongoing market challenges.