UpGrad has successfully concluded its acquisition of the edtech company Unacademy for a sum exceeding $200 million, a notable reduction from Unacademy’s previous peak valuation of $3.44 billion. Gaurav Munjal, co-founder and CEO of Unacademy, confirmed the transaction’s completion in a post on X on September 1, 2026. This marks an end to a series of negotiations that spanned several months between the two organisations.

Munjal acknowledged the change in valuation since Unacademy’s peak, stating that the company had initially raised capital at a high valuation but would now proceed with the deal at a fraction of that amount. The acquisition not only finalises extensive discussions but also indicates a significant shift in the education technology landscape.

Impact On UpGrad’s Business Portfolio

The acquisition enables upGrad to enter the online test-preparation sector, enhancing its current offerings which include higher education, professional upskilling, certification, and study abroad programmes. Unacademy’s extensive portfolio includes preparation courses for competitive exams such as UPSC, JEE, NEET, and GATE, which will complement upGrad’s existing services.

Having attained unicorn status six years ago, Unacademy experienced rapid growth during the pandemic’s boost to the edtech sector. However, the company later made strategic changes to refocus its efforts towards building sustainable operations. Munjal mentioned that, despite the challenges faced after the pandemic boom, Unacademy has significantly improved its financial standing.

For Munjal, the decision to merge with upGrad was guided by the broader opportunities within the education ecosystem, rather than immediate financial need. With a turnover of approximately Rs 400 crore and substantial reserves, Munjal indicated that the company had the option to operate independently but chose to pursue the acquisition for greater potential.

Strategic Overview And Future Goals

The partnership between upGrad and Unacademy represents a strategic alignment of two businesses that hold different yet complementary positions within India’s education sector. upGrad has revealed that this acquisition will effectively establish its entry into a market segment where it previously had no foothold.

The two companies’ convergence follows a substantial internal funding round of Rs 360 crore at upGrad, which saw investments from notable backers, including Ronnie Screwvala, who contributed Rs 300 crore. This financial support reflects the confidence investors have in the evolving education landscape in India.

As Unacademy embarks on this new chapter under the upGrad banner, Munjal expressed pride in the journey the company has experienced, highlighting its achievements, such as producing a vast number of educational videos that garnered over 10 billion views. He also referenced the success of Airlearn, Unacademy’s language-learning application, which became one of the top three most-downloaded apps in its category globally within a short timeframe.

Munjal now anticipates significant value creation from this merger for shareholders and a promising trajectory for all stakeholders involved. The acquisition not only represents a landmark moment for both companies but also signifies a new direction in the ever-changing world of educational technology.

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