Ronnie Screwvala's UpGrad in talks to acquire Unacademy for $300- $400 million

Unacademy co-founder Gaurav Munjal

Edtech major UpGrad is in talks to acquire Unacademy in a deal that could value the test-prep platform at $300- 400 million, people familiar with the matter told Moneycontrol.

The two companies could sign a term sheet in three weeks, the people said, requesting anonymity as talks are private. UpGrad's Ronnie Screwvala and Unacademy's Gaurav Munjal did not respond to messages and calls.

The potential valuation represents a sharp drop from Unacademy’s last publicly known valuation of $3.44 billion back in 2021.

As part of the proposed transaction, Unacademy’s language-learning app AirLearn will be spun out into a separate entity, while the core test-prep business — which includes its growing network of offline learning centres — will be sold to UpGrad, the sources added. UpGrad will have no equity in AirLearn.

Unacademy’s cash burn has reduced sharply over the past three years — from a peak of over Rs 1,000 crore annually to around Rs 100 crore currently. The company now holds about Rs 1,200 crore in cash reserves, the people said, making it an attractive buy.

Founders’ transition already underway

The talks come months after Moneycontrol reported in May 2025 that Unacademy’s founders Gaurav Munjal and Roman Saini were planning to step back from day-to-day operations and spin off AirLearn as a standalone venture. At the time, the board had asked the founders to first reduce cash burn and stabilise operations before any leadership changes.

That transition has since taken shape. In September, Moneycontrol reported that co-founder Sumit Jain had been appointed CEO of Unacademy’s test-prep business, formalising the company’s shift to a new management structure. Jain, who joined Unacademy through the acquisition of his real-estate startup CommonFloor, has been leading its offline centre expansion and profitability push.

How has Unacademy’s business evolved?

Founded in 2015, Unacademy became one of India’s most prominent edtech unicorns during the pandemic, backed by investors such as General Atlantic, SoftBank, and Temasek.

Temasek, the Singapore state investment firm, has a significant presence on the cap tables of both Indian edtech unicorns: it led Unacademy’s $440 million Series H funding round in August 2021, valuing the company at $3.44 billion. Temasek is also a key investor in UpGrad, having participated in multiple rounds, including a $120 million investment in April 2021 and an additional $60 million in October 2024, and is listed among the company’s top investors.

However, as the online education boom cooled and competition intensified, the company cut costs, shut non-core verticals, and pivoted towards offline test preparation through its Unacademy Centres.

For FY24, Unacademy reported Rs 839 crore in revenue, down about 7 percent year-on-year, while net losses narrowed by 62 percent to Rs 631 crore, according to filings.

Why is UpGrad pursuing this deal?

For UpGrad, founded by Ronnie Screwvala, Mayank Kumar, and Phalgun Komandur, the potential acquisition would mark one of the largest consolidation deals in India’s edtech space this year. The company has been actively scouting for acquisitions to expand its footprint across professional, degree, and test-prep segments.

While UpGrad has a strong presence in higher education and skilling, Unacademy’s test-prep network — including offline centres in Kota, Delhi, and other cities — could help it broaden its learner funnel and strengthen its K-12 and competitive exams portfolio.