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upGrad–Unacademy deal called off over valuation differences

EntrackrEntrackr · 2d ago
upGrad–Unacademy deal called off over valuation differences
Medial

upGrad–Unacademy deal called off over valuation differences Confirming the development, Ronnie Screwvala, co-founder of upGrad, told Entrackr, “Yes, we are not proceeding due to valuation differences." The much-speculated acquisition talks between online higher education platform upGrad and test-prep major Unacademy have been called off after both parties failed to reach a consensus on valuation, according to sources aware of the matter. While we cannot comment on specific numbers, it is fair to say that we were unable to arrive at a mutually agreeable valuation. Entrackr had earlier reported that upGrad and Unacademy were engaged in merger and acquisition discussions as consolidation accelerates across India’s edtech sector. The talks drew attention at a time when Unacademy was navigating internal restructuring, implementing cost-rationalisation measures, and sharpening its focus on its core test-preparation business. In recent months, Gaurav Munjal, co-founder and CEO of Unacademy, had publicly acknowledged that the company was exploring various strategic options, including fundraising and potential M&A transactions, while maintaining that no decision had been finalised. Munjal had also clarified the company’s position on employee stock option (ESOP) exercises and valuation expectations, amid questions around internal liquidity and employee compensation. Separately, Unacademy has put on hold proposed amendments to its 2018 ESOS scheme following strong pushback from former employees. The objections were primarily linked to the tax implications and liquidity concerns associated with exercising stock options at a significantly lower valuation compared to earlier rounds. Unacademy has yet to comment officially on the stalled merger talks. Founded in 2015, Unacademy has raised over $800 million from investors including SoftBank, General Atlantic, and Tiger Global, and was last valued at around $3.4 billion during the peak of the edtech funding cycle. However, like several peers in the sector, the company has faced pressure to recalibrate growth expectations amid a prolonged funding slowdown. upGrad, which operates across higher education, upskilling, and overseas education segments, has previously pursued selective acquisitions to strengthen its portfolio.

Yes, we are in M&A talks: Unacademy's Gaurav Munjal

EntrackrEntrackr · 1m ago
Yes, we are in M&A talks: Unacademy's Gaurav Munjal
Medial

Yes, we are in M&A talks: Unacademy's Gaurav Munjal Munjal’s remarks come amid media reports that higher education and skilling platform upGrad is in talks to acquire Unacademy at a valuation of $300 to 320 million. “Yes, we are in M&A conversations, and yes, if we find a win-win situation where consolidation can lead to a stronger entity, we will go ahead with this,” Unacademy co-founder Gaurav Munjal said in a post on social media platform X. Munjal’s remarks come amid media reports that higher education and skilling platform upGrad is in talks to acquire Unacademy at a valuation of $300 to 320 million, nearly 90% lower than the startup’s peak valuation of about $3.5 billion during the 2021 funding boom. In a detailed post, Munjal reflected on Unacademy’s journey, which began as a YouTube channel in 2010 that he started while in college to help friends with computer science concepts. The platform was formally launched in December 2015 and quickly scaled by focusing on free content, strong educator communities, and a tech-first approach to learning. The company saw rapid growth between 2019 and 2021 after launching its subscription product, reaching close to one million paid subscribers and raising over $700 million across multiple funding rounds. However, Munjal said the post-Covid shift of learners back to offline coaching, aggressive cash burn, and the rise of lower priced competitors hurt the business. He acknowledged that Unacademy might now be valued at less than $500 million, compared to around $3.5 billion three years ago, and noted that chasing valuation earlier led to several strategic missteps. Over the past three years, Unacademy has cut costs sharply, reduced its annual burn from about Rs 1,400 crore in 2022 to under Rs 175 crore in 2025, lowered pricing, and refocused on content and subscriptions. For FY25, the SoftBank-backed firm reported Rs 826 crore revenue and reduced its net losses by 31% year-on-year to Rs 436 crore. While consolidation remains an option, Munjal said the company is now focused on building sustainable education products with strong unit economics rather than pursuing headline valuations.

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