Mumbai, March 16: In a move signaling major consolidation in India’s education technology sector, upGrad has signed a non-binding term sheet to acquire its rival Unacademy in a 100% all-stock transaction. Announced on Sunday, March 15, the deal marks a significant "reset" for two of the country’s most prominent edtech brands. While the specific valuation remains undisclosed until the transaction officially closes, both companies confirmed that Unacademy’s co-founder and CEO, Gaurav Munjal, will remain at the helm of the Unacademy brand within the combined entity.

The proposed merger follows a turbulent period for the Indian edtech landscape, which has seen valuations plummet from pandemic-era peaks. This specific deal comes months after initial discussions reportedly stalled over valuation discrepancies. By opting for a share-swap model, the two firms aim to create a comprehensive "lifelong learning" ecosystem that spans from K-12 and test preparation to higher education and professional upskilling. Why US Layoffs in 2026 are Different: AI Pivot or Skill Crisis?

upGrad Signs Term Sheet for 100% Share Swap with Unacademy

upGrad and Unacademy Sign Acquisition Term Sheet With Break Fee Clause

upGrad chairman Ronnie Screwvala emphasised that the acquisition is built on the belief that "the whole is bigger than the sum of its parts." Under the new structure, Unacademy will continue to focus on its core strength, building innovative online education products, while benefiting from upGrad’s established presence in the professional and higher education markets.

Gaurav Munjal, who will stay on as CEO, noted that the partnership allows Unacademy to double down on product innovation, particularly through Artificial Intelligence. The agreement also includes a "break fee" clause, a safeguard ensuring that both parties are committed to closing the deal over the next few months. H-1B Visa Registration FY 2027: New $100K Fee and Wage-Weighted Lottery Now Live.

Restructuring and Financial Health

Before the deal was announced, Unacademy underwent a year of significant operational shifts to achieve "default alive" status. This included:

  • Franchise Pivot: Moving away from company-operated offline centers to a franchise-based model.

  • ESOP Buyback: Completing a INR 50 crore employee stock ownership plan buyback.

  • Liquidity: Munjal confirmed that Unacademy currently maintains cash reserves exceeding USD 100 million.

  • Global Traction: The company’s global language-learning product, Airlearn, is reportedly gaining significant momentum in the US, UK, and Germany.

The acquisition is a stark reminder of the shifting tides in the sector. Unacademy, which was valued at USD 3.4 billion in 2021, has seen its private valuation projections drop significantly in recent years. Analysts suggest this merger is a pragmatic response to a cooling venture capital environment and the return to physical classrooms, which has forced digital-first companies to consolidate resources.

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(The above story first appeared on LatestLY on Mar 16, 2026 12:17 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).