upGrad Education Private Limited is in talks to acquire Unacademy in a deal that could be worth $300-400 million (₹2,800-3,500 crore). “The two companies could sign a term sheet in three weeks”, said a person familiar with the matter. The potential valuation shows a significant decline from Unacademy’s $3.44 billion valuation in 2021, demonstrating how far India’s pandemic-era edtech boom has cooled.
Unacademy plans to create a new company for its language learning app AirLearn. The main test prep business, including its expanding offline learning centres, will be acquired by upGrad. However, upGrad will have no stake in AirLearn.
The company has decreased its cash burn from over ₹1,000 crore annually at its peak to near ₹100 crore now. As of now, Unacademy holds approximately ₹1200 crore in cash reserves, ensuring it is a relatively stable and appealing acquisition option.
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Unacademy, founded in 2015, gained prominence as one of India’s leading edtech unicorns during the pandemic, backed by marquee investors such as General Atlantic, SoftBank, and Temasek.
