A term sheet has been signed for upGrad to acquire Unacademy in a 100 percent share swap deal. As per the company, the deal is reflective of how the edtech space is moving away from chasing market share and toward building a more sustainable model focused on long-term, continuous learning.
Gaurav Munjal, Co founder and CEO of Unacademy, shared the update via X, outlining a strategic shift for the organisation.
While the final valuation will be disclosed once the formal paperwork is filed, the companies say the agreement represents one of the most significant consolidation moves in India’s digital education sector.
The announcement follows what Unacademy described as a year of internal transition. The company said it restructured its offline operations by shifting company run learning centres to a franchise led model. It added that the move was intended to reduce operational complexity and allow the organisation to focus more on developing digital learning products.
Both companies have also framed the merger as a strategic fit between their core strengths. upGrad, led by Ronnie Screwvala, has built its presence in higher education and professional upskilling, while Unacademy has historically focused on test preparation and K-12 learning. Bringing these segments is intended to create a more connected learning ecosystem.
The companies say the combined platform aims to support learners across different stages of their academic and professional journey. In their view, a student could begin with school level learning or exam preparation and later move into higher education and career upskilling within the same ecosystem.
The merger is also rightly described as a technology driven move. Leadership from both companies acknowledged that the edtech sector has seen limited product innovation in recent years. With the rise of generative AI, education could benefit from more personalised learning and intelligent tutoring systems. According to the companies, combining their resources will allow them to invest more in research and development and build learning products designed for an AI driven future.
