upGrad has signed a term sheet to acquire Unacademy in a 100% share swap transaction, Unacademy co-founder and CEO Gaurav Munjal said on Sunday, marking a potential consolidation move in India’s edtech sector.
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Announcing the development on X, Munjal said both companies had agreed on an all-stock structure for the deal but would not disclose the valuation until the transaction is formally completed.
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“Unacademy and upGrad have signed a term sheet for upGrad to acquire Unacademy in a 100% share swap deal. Neither side will disclose the valuation until closing, when the papers are filed, and the transaction becomes public,” he said.
Munjal said he would continue to lead Unacademy if the transaction goes through. “I will be staying back as Co-Founder and CEO Unacademy – with the Goal to build Great Online Products for Learners in India and Globally.”
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Strategic shift at Unacademy
The announcement comes after a year of operational changes at the Bengaluru-based online learning company, which Munjal said had refocused its strategy on digital products. “In the last one year, a lot has happened at Unacademy,” he wrote. “We consolidated company-operated centres with franchise partners so we could refocus on what we do best, building great online education products.”
He also said the company recently completed an employee stock option buyback. “We completed a ₹50 crore ESOP buyback and nearly 40% of former employees have already participated.”
Unacademy currently holds substantial liquidity, according to Munjal. “Our Cash Reserves as of today are more than $100M.”
Munjal said the company had begun expanding its product offerings outside India through Airlearn, a global learning platform. Airlearn, he added, is gaining meaningful traction in the US, UK, Germany and Canada.
Unacademy, founded in 2015, grew rapidly during the pandemic-driven boom in online education but later faced slowing growth as demand for digital learning platforms moderated and competition intensified across the edtech industry.
Reflecting on the sector’s trajectory, Munjal said the company had played a role in shaping India’s modern edtech model. “Unacademy helped invent the Modern EdTech Playbook. Along the way, we lost some focus and market share, and the sector itself has not seen enough real product innovation in recent years.”
Munjal also pointed to the potential role of artificial intelligence in reshaping the education technology sector. “AI will fundamentally reshape education, and EdTech may become one of its biggest beneficiaries. The opportunity to reimagine learning products has never been greater.”
He praised upGrad founder Ronnie Screwvala and the company’s focus on higher education and professional upskilling. “I have long admired what @RonnieScrewvala and the upGrad team have built. They have quietly but relentlessly established themselves in the upskilling, lifelong learning and higher education space.”
If the transaction is completed, Munjal said the combined platform could span multiple segments of the education market. “If & when we do come together, we share upGrad’s belief that ‘The Whole is bigger than the Sum of Parts’ and altogether we will impact students, learners and working professionals & build great Products from K12 to Forever Learning.”
