UpGrad to acquire Unacademy in all-stock deal

Edtech major UpGrad has signed a term sheet to acquire Unacademy in an all-stock deal. Both the founders did not disclose the valuation but said it is a 100% share swap deal.

In a post on X, Gaurav Munjal, CEO of Unacademy said in the last one year, they consolidated company operated centres with franchise partners so that they could refocus on  building online education products.

"We completed a Rs 50 crore ESOP buyback and nearly 40% of former employees have already participated. Airlearn, our first global product, is gaining meaningful traction in the US, UK, Germany and Canada," Munjal said, adding that they have Cash Reserves of more than $100 million.

Post acquisition, Munjal will be staying back as Co-Founder and CEO with the goal to build online products for learners in India and globally.

For many months now, both edtech companies have been discussing the acquisition, and officially confirmed it on Sunday.

Munjal said 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 added.

UpGrad co-founder Ronnie Screwvala said, "We are already seeing Airlearn gain global traction.If this closes, upGrad’s integrated model with an expanded focus from K12 to forever learning will be on a strong trajectory."