Indian edtech startup upGrad has completed its acquisition of rival Unacademy in an all-stock transaction valuing the company at approximately $206 million. The deal marks a dramatic decline from Unacademy's peak valuation of $3.5 billion.
Unacademy, once among India's most valuable edtech startups, has been acquired by upGrad as the Indian education technology sector faces significant valuation pressures. The all-stock deal valued the company at just over $200 million, representing a 94% decline from its previous peak.
The acquisition consolidates two major players in India's competitive edtech market. Both companies offered online learning platforms targeting students across various academic levels and competitive exams.
The deal reflects broader challenges in the edtech sector following post-pandemic corrections and investor pullback from high-growth education technology companies. Unacademy had previously raised funding at higher valuations but struggled with profitability and changing market dynamics.
Terms indicate upGrad shareholders will absorb Unacademy through the all-stock structure, avoiding significant cash outlay while expanding its user base and course offerings.
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