Uncertainty looms over Gaurav Munjal’s new startup as UpGrad calls off Unacademy deal

Uncertainty looms over Gaurav Munjal’s new startup as Unacademy–upGrad acquisition talks fall through

The collapse of months-long acquisition talks between Unacademy and upGrad has cast uncertainty over the next steps of Unacademy co-founders Gaurav Munjal and Roman Saini, who were in talks to raise funding for a new startup, sources familiar with the matter said.

Munjal, who stepped away from day-to-day operational roles at Unacademy earlier last year, was in discussions to raise about $17 million from Peak XV Partners and Blume Ventures (also Unacademy' s early investors), apart from a dozen marquee founders according to people cited above.

“Since the talks of selling Unacademy are now on hold, Gaurav has decided to stay back and run Unacademy. His decision to stay back also means any investment into his and Roman’s new startup will now happen at a later point,” a person aware of the deal told Moneycontrol

Details such as the startup’s business model, valuation, and launch timeline remain unclear. Moneycontrol has earlier reported that there was a plan to hive off langauge-learning app AirLearn as a separate business from the Unacademy' group, which Gaurav and Roman would eventually run.

Peak XV Partners, Blume ventures and Gaurav Munjal did not respond to Moneycontrol's queries

What happened to the Unacademy–upGrad acquisition talks?

The funding discussions come as Unacademy’s acquisition talks with upGrad, which had been under way for several months, fell through after the two sides failed to align on valuation and deal structure.

The talks had initially been centred on valuing Unacademy at $300–400 million, as first reported by Moneycontrol.

What leadership changes have taken place at Unacademy?

The breakdown of the discussions follows a period of leadership transition at Unacademy. Earlier last year, Munjal and fellow co-founder Roman Saini stepped back from operational roles, after which the company appointed co-founder Sumit Jain as chief executive of its core test-prep business.

What is Unacademy’s current financial position?

Unacademy currently has around Rs 1,100 crore in cash on its balance sheet, and people familiar with the matter said the company is expected to decide its next course of action in the coming days following the collapse of the upGrad talks.

Are other edtech founders also leaving to start new ventures?

Munjal’s move comes amid a broader churn of senior founders and executives across India’s edtech sector, many of whom have exited operating roles over the past year to build new ventures outside their original companies.

At upGrad, co-founder and managing director Mayank Kumar stepped down in October 2024 to launch a new venture focused on placing skilled Indian workers, particularly in healthcare, in overseas markets. Kumar has since raised $7 million for the new company, according to earlier reports.

Similarly, Chandan Singh, the former co-founder of competitive exam preparation platform Adda247, exited the company in September 2024 to build a new venture that is currently operating in stealth mode.

Unacademy itself has seen senior leadership departures beyond its founders. Former chief operating officer Vivek Sinha left the company in 2024 and subsequently launched his own edtech startup, raising $11 million in funding, people familiar with the matter have said.

At Teachmint, former co-founder and chief technology officer Anshuman Kumar stepped away to start Duolop, a relationship management app for couples.

What does this indicate for India’s edtech sector?

Taken together, the exits point to a phase of transition in the edtech sector, with several early founders and senior operators moving on to build new companies even as their former firms reset leadership structures and operating priorities.