Edtech firm upGrad has formally filed with the Competition Commission of India to acquire fellow online education provider Unacademy, marking a strategic move into the test preparation segment. The deal, valued at roughly $218 million, represents a steep drop from Unacademy’s peak valuation and highlights ongoing market consolidation in the sector.
- Deal valuation down 90% from Unacademy’s 2021 peak
- Unacademy to retain CEO post-acquisition
- Edtech sector funding hit eight-year low in 2025
What happened
Unacademy co-founder and CEO Gaurav Munjal will continue leading the company post-acquisition, and the deal includes Unacademy’s various business verticals. The startup also expects to have cash reserves of around ₹900-₹950 crore at closing, providing a financial cushion as it integrates with upGrad.
Why it matters
This acquisition marks upGrad’s entry into the highly competitive online test preparation segment where it previously had no presence. By combining upGrad’s strength in higher education courses with Unacademy’s reach in competitive exam coaching like NEET and CAT, the combined entity aims to offer a more comprehensive learning portfolio to its users and enhance long-term shareholder value.
The deal signals significant consolidation at a time when Indian edtech has struggled to regain momentum after the pandemic-driven boom. Declining investor confidence following notable sector setbacks, including the BYJU’s controversy, has led to a nearly 56% drop in edtech funding in 2025 compared to the previous year. This acquisition may help stabilize and refocus the market by leveraging synergies across established players.
What to watch next
Meanwhile, broader sector dynamics remain important. The ability of major players like upGrad and Unacademy to innovate—particularly leveraging new technologies such as AI to regain competitive advantages—will influence the future shape of online education in India amid continued funding constraints and evolving learner preferences.