Unacademy Sold for $200M

upGrad has completed its acquisition of Unacademy, valuing the online test-prep company at around $200 million. The all-stock deal, which was cleared by the Competition Commission of India in July, sees Unacademy's CEO Gaurav Munjal continue as CEO of the Unacademy division.

The acquisition marks a significant decline in Unacademy's valuation, which peaked at $3.4 billion in 2021. The company's revenue from operations also fell 16% to Rs702 crore in FY25, while its net loss was trimmed by 31% to Rs435 crore.

upGrad, on the other hand, ended FY25 with a 5.5% rise in revenue from operations to Rs1,569 crore, and cut its losses by 51% to Rs274 crore. The acquisition gives upGrad access to the competitive test-prep market and a sizeable revenue base and cash reserve.

Unacademy's core brands, including PrepLadder, Graphy, and language platform Airlearn, will remain distinct operating entities. The company has a topline of around 400 crores and 900 crores in the bank.

## What it means The acquisition marks the end of India's edtech boom, which saw companies like Unacademy raise massive funding rounds and achieve high valuations. The sector has since experienced a downturn, with many companies struggling to maintain their valuations. The deal is a sign of consolidation in the sector, with upGrad looking to expand its offerings and increase its revenue base.

The acquisition also highlights the challenges faced by edtech companies in India, which have struggled to maintain their growth and profitability. Unacademy's decline in valuation and revenue is a testament to the difficulties faced by the sector, and the need for companies to adapt and consolidate in order to survive.

## Why it matters The acquisition of Unacademy by upGrad has significant implications for the edtech sector in India. It marks a shift towards consolidation and collaboration, with companies looking to expand their offerings and increase their revenue base. The deal also highlights the importance of adaptability and resilience in the face of challenges, and the need for companies to be willing to pivot and change in order to survive.

The acquisition is also a sign of the maturing of the edtech sector in India, with companies looking to focus on profitability and sustainability rather than just growth. It is likely to have a significant impact on the sector, with other companies looking to follow suit and consolidate their operations.