India’s once high-flying edtech company Unacademy has been acquired by rival upGrad in an all-stock deal that values Unacademy at approximately US$206 million. That figure reflects a staggering decline of almost 94% from its peak valuation during 2021. The deal, first announced in March, finally closed this week. Shareholders of Unacademy will receive upGrad shares, while angel investors were paid out at closing.
Unacademy, headquartered in Bengaluru and backed by major investors including SoftBank, Tiger Global, and General Atlantic, once commanded a valuation of US$3.44 billion at its high water mark.
The Shape of Unacademy Before the Deal
At the time of the acquisition, Unacademy had roughly ₹9 billion (around US$94.8 million) in cash reserves, and its annual revenue stood at about ₹4 billion (US$42.13 million). Most segments of its operations were either profitable or nearly so. The company retained the option to continue operating independently, but leadership believed achieving greater scale or an eventual IPO would require branching further into offline education.
Like many edtech firms, Unacademy surged during the pandemic, investing heavily in content and expansion, especially to compete with rivals such as Byju’s while demand for online learning spiked. However, demand receded once in-person class resumed, prompting cost cuts, layoffs, and business model restructuring.
The Role of Airlearn, Brand, and Leadership Post-Acquisition
The deal includes Unacademy’s language-learning app Airlearn, which will remain a part of upGrad for the time being. Unacademy’s other holdings—including PrepLadder and Graphy—are also wrapped into the transaction. UpGrad will preserve the Unacademy brand. Unacademy’s co-founder and CEO, Gaurav Munjal, will continue leading the business, with particular focus on its online operations and Airlearn.
Employees appear safe: the company employs about 1,000 people, and no layoffs are planned as part of this acquisition.
Airlearn, an edtech platform around two years old, serves some ten million users across more than 150 countries. Also notable is Unacademy’s free education content, which has amassed over 10 billion views on YouTube.
In late 2025, Munjal discussed raising external funding for Airlearn and secured term sheets from investors, but ended that process when talks with upGrad progressed. Over the next six months, leadership is expected to decide whether to scale Airlearn internally or through additional funding.
This acquisition caps a sharp reversal in India’s edtech sector. Rival firm Byju’s, once valued at US$22 billion, saw its valuation collapse and entered insolvency proceedings in 2024.
What this means: Even as Unacademy achieved revenue growth and cost control, the broader market’s cooling for edtech has demolished valuations once thought untouchable. The deal underscores a shift: profitability and sustainable business models are now edging out growth-at-all-costs. For Unacademy, generational backing and brand equity provided leverage—but even those weren’t enough to preserve its 2021 gold standard. As upGrad absorbs Unacademy, the next year will be crucial. Will Airlearn grow globally? Can Unacademy regain momentum? Investors and competitors alike will be watching how this chapter reshapes India’s edtech landscape.
