upGrad is planning to buy Unacademy in an all-stock deal after several months of discussions. Reports say the deal values Unacademy at around ₹2,055 crore (about US$218 million).
Unacademy, which started as a YouTube learning channel, is now being valued at more than 90% lower than its peak value of $3.4 billion during the 2021 funding boom.
Unacademy is expected to have around ₹900–950 crore in cash at the time of the deal, which is one of the main reasons upGrad is interested in acquiring it.
upGrad, led by Ronnie Screwvala, will likely seek approval from the Competition Commission of India soon.
This deal is one of the biggest mergers in India’s edtech sector, as companies adjust to slower growth after the pandemic. At the same time, upGrad is also planning to raise about ₹375 crore from its existing investor Temasek and its founder.
Temasek has invested in both companies, owning about 22% in upGrad and 5% in Unacademy. Unacademy has raised around $880 million in total funding, including a $440 million round in 2021 led by Temasek. In comparison, upGrad has raised about $330 million and was last valued at $1.9 billion.
This deal shows how the edtech industry in India is changing after the pandemic boom. Growth has slowed down, and companies are adjusting. The situation has also been affected by the struggles of Byju’s, which was once valued at $22 billion.
Founded about 10 years ago, Unacademy started as a YouTube channel by Gaurav Munjal, Hemesh Singh, and Roman Saini. It later grew into a full edtech platform and is now also focusing on offline learning centers.
Apart from this deal, upGrad has also acquired Internshala in an all-stock deal worth around ₹80 crore.
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