SoftBank-backed Indian edtech firm Unacademy has signed a term sheet with rival upGrad for its acquisition in a share swap deal, co-founder and chief executive Gaurav Munjal stated in a social media post.
The transaction would be structured as a 100% share swap, with the valuation to be disclosed only after the deal closes and the papers are filed, Munjal added. upGrad chairman Ronnie Screwvala separately confirmed the agreement in a post on X.
Munjal stated he would remain Unacademy’s co-founder and CEO, with a goal of building online products for learners in India and globally.
“In the last one year, a lot has happened at Unacademy,” Munjal stated, outlining steps the company had taken to streamline operations and sharpen its product focus.
He stated Unacademy had consolidated company-operated centres with franchise partners so it could refocus on what it does best: building online education products.
He also stated the company has completed a Rs 50-crore ESOP acquireback, with nearly 40% of former employees already participating.
The deal comes as Unacademy’s valuation has dropped significantly from its pandemic-era high. In a note posted on X in December to mark the startup’s 10th anniversary, Munjal stated the company’s valuation had fallen from its $3.5-billion peak three years earlier to less than $500 million.
Unacademy has raised about $854.3 million across 13 funding rounds, according to PitchBook, with investors including SoftBank, Tiger Global, General Atlantic, and Peak XV Partners.
“Unacademy assisted invent the Modern EdTech Playbook. Along the way, we lost some focus and market share, and the sector itself has not seen enough real product innovation in recent years,” Munjal stated.
In a separate post on X, upGrad co-founder Ronniee Screwvala stated Munjal would stay on to build Unacademy and focus on creating online education products “that learners love.”
Screwvala stated the two sides had also agreed to a break fee if the transaction does not close.
Bengaluru-based Unacademy is an edtech company that operates an online learning platform offering live classes, recorded courses, and test preparation programmes for students preparing for competitive exams and professional qualifications.
Founded in 2015 by Gaurav Munjal, Roman Saini, and Hemesh Singh, the venture-backed startup enables educators to create and deliver digital lessons to learners across India through subscription-based offerings spanning K-12, test preparation, and skill development.
In 2024, Unacademy was reported to hold extfinished discussions with offline test preparation centre Allen Career Institution for a potential sale at a valuation of $800 million.
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