UpGrad-Unacademy acquisition talks collapse over valuation differences: Report

Talks between edtech firms Unacademy and upGrad over a potential acquisition have collapsed due to disagreements on valuation, ending months of negotiations between the two companies, sources said, as per Moneycontrol.

Acquisition talks between edtech firms Unacademy and upGrad fell through after the two sides failed to reach a consensus on valuation, according to sources familiar with the matter. The development brings to an end months of discussions between the companies.

Moneycontrol had earlier reported that upGrad, founded by Ronnie Screwvala, was in talks to acquire Unacademy at a valuation of $300–400 million, a significant reduction from Unacademy’s peak valuation of $3.4 billion during the funding boom.

Sources said under the proposed transaction, Unacademy’s investors were expected to receive a minority stake in upGrad, which was valuing itself at around $2 billion. However, negotiations stalled as the parties were unable to arrive at mutually acceptable terms, with valuation differences emerging as the primary sticking point.

Confirming the development to Moneycontrol, Screwvala said the companies had decided not to proceed due to valuation disagreements, adding that while specific numbers could not be discussed, the parties could not align on valuation expectations.

Unacademy Co-Founder Gaurav Munjal did not respond to queries sent by Moneycontrol.

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Unacademy currently has around ₹1,100 crore in cash on its balance sheet, and sources indicated that the company is expected to chart its next steps in the coming days.

The talks with upGrad followed a period of transition at Unacademy. Earlier this year, Co-Founders Munjal and Roman Saini stepped back from operational roles as part of a leadership reshuffle. The company later appointed Co-Founder Sumit Jain as chief executive of its core test-preparation business, consolidating leadership around its main revenue-generating vertical.

Over the past two years, Unacademy has also scaled back its earlier expansion into multiple categories, refocusing on its core offerings as it sought to rein in costs. The company has undertaken several rounds of workforce reductions since 2022 to realign its operations with post-pandemic demand trends.

Moneycontrol had earlier reported that the proposed transaction was expected to centre largely on Unacademy’s test-prep business, rather than its non-core units, but valuation differences ultimately proved insurmountable.

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