Unacademy, an Indian edtech startup, has been acquired by its rival upGrad for approximately $206 million. This all-stock transaction values Unacademy at around 94% less than its peak valuation of $3.44 billion in 2021.
The deal, first announced in March, closed on Monday, according to Unacademy co-founder and CEO Gaurav Munjal. Unacademy shareholders will receive upGrad shares, while angel investors were cashed out.
Despite having substantial funds and most businesses being profitable or near profitability, Unacademy's leadership reportedly believed expansion into more education areas was necessary for scale or a public listing. Joining upGrad, which has a larger presence in offline education, offered a path to achieve this.
The Unacademy brand, including PrepLadder and Graphy, will be retained, and Gaurav Munjal will continue as CEO, focusing on online operations and the language-learning app Airlearn. No layoffs are planned for Unacademy's approximately 1,000 employees.