upGrad Acquires Unacademy for Over $200 Million: What the Deal Means

upGrad-Unacademy Deal: Ronnie Screwvala-led upGrad has completed its acquisition of Unacademy, as Unacademy co-founder and CEO Gaurav Munjal confirmed the transaction on September 1. The deal, valued at just over $200 million, brings an end to months of discussions between the two companies.

How much has Unacademy's valuation fallen?

The transaction represents a reset from Unacademy's peak valuation of $3.44 billion.

upGrad's discussions to acquire Unacademy were first reported in November 2025, with the proposed deal then valued at $300-400 million. Negotiations continued on and off for several months, including an impasse over valuation differences.

In March, upGrad signed a term sheet to acquire Unacademy through an all-stock transaction, with Munjal set to continue as CEO. The Competition Commission of India approved the proposed combination in July, clearing a key regulatory hurdle.

What is Unacademy worth today?

The company has since reduced its operations and focused on building a more sustainable business. Munjal said Unacademy now has a topline of around ₹400 crore, with most of its businesses profitable or near-profitable. He also said the company had ₹900 crore in the bank.

According to Munjal, the acquisition was not driven by a need for capital. He said the company had the option to continue independently but chose to combine with upGrad.

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What does upGrad get from the acquisition?

The deal gives upGrad an entry into online test preparation, adding Unacademy's businesses in areas such as UPSC, JEE, NEET and GATE.

upGrad already operates across higher education, certification, study abroad and professional upskilling. In its filing with the Competition Commission of India, the company said the transaction would allow it to enter the online test-preparation segment, where it previously had no presence.

The acquisition therefore expands upGrad's education portfolio into a new category while bringing Unacademy's test-preparation business into the larger platform.

How was upGrad funded before the deal?

The acquisition follows upGrad's ₹360 crore internal funding round, in which Ronnie Screwvala invested ₹300 crore. Temasek, IFC and 360 One also participated, according to media reports.

Conclusion: What does the deal mean?

The acquisition marks a major change for Unacademy, which has moved from a peak valuation of $3.44 billion to a transaction value of just over $200 million. For upGrad, the deal expands its presence into online test preparation and adds Unacademy's UPSC, JEE, NEET and GATE businesses to its existing education portfolio.