Unacademy to be acquired by upGrad in a joint-venture deal involving the Indian edtech sector

Unacademywhich became one of the most valuable edtech startups in India, is expected to be acquired by its competitors upGrad in a comprehensive partnership that will bring together two of the largest online learning platforms in the country.

Sunday, Unacademy co-founder and CEO Gaurav Munjal he said in the post on X that the company signed the paper of upGrad to acquire Unacademy in a 100% share agreement, adding that the calculation will not be disclosed until the transaction is closed. The announcement comes three months after Munjal said the price of Unacademy had fallen below $500 million – down about 85% from his The risk during the epidemic of $ 3.5 billion in 2021.

India’s once-thriving edtech sector has struggled since the pandemic-era lockdown eased, as students return to classrooms and demand online tests and learning platforms stabilize. Companies including Unacademy, which have grown exponentially during the pandemic, have cut costs, scaled back online ambitions, and reassessed major digital assets.

In a separate postupGrad co-founder Ronnie Screwvala said Munjal will continue to lead Unacademy after the acquisition, adding that the merger will strengthen upGrad’s integrated model of K-12 education, talent development, and lifelong learning. The companies have agreed to an undisclosed fee if the deal doesn’t close, Screwvala said.

“Unacademy helped create the modern edtech textbook,” Munjal said. “Over the course of this period we lost focus and market share, and the sector has not seen much innovation in the market in recent years.”

Founded in 2015, Unacademy emerged as one of India’s leading edtech startups during the pandemic, when lockdowns drove millions of students to online learning platforms. But demand stabilized after classes reopened, the company said cut costs, layoffsand reorganizing parts of his business.

Munjal said Unacademy currently has more than $100 million in revenue after spending last year consolidating its corporate-run offline locations and franchises and refocusing its online learning products. The company also completed an asset recovery worth ₹500 million (about $5.40 million), with about 40% of former employees participating, he said.

Unacademy has raised nearly $854.3 million across 13 funding rounds, according to PitchBook, and counts investors including SoftBank, Tiger Global, General Atlantic, and Peak XV Partners among its backers.

This change has also changed the competitive landscape of the Indian edtech sector. Byju’s, which had become a staple in the country, saw its value written down to zero by zero. went into insolvency what is happening in September 2024.

Meanwhile, his partner Physics Wallah, who was considered the underdog in the group, has turned profitable and continues to grow. The company they did very well in the public markets at the end of last year.

In recent months, Munjal has devoted a lot of attention to Airlearn, an AI-based language learning program that mimics the game-based approach made popular by Duolingo. The move has sparked controversy with some of Unacademy’s investors, who see the edtech giant as being left at a critical time, people familiar with the matter told TechCrunch.

However, Munjal said Airlearn is growing in markets including the United States, the United Kingdom, Germany, and Canada, and said artificial intelligence could open up new opportunities for educational technology.