UpGrad in talks to buy Unacademy for $300–400 million
UpGrad is reportedly negotiating to acquire Unacademy for about $300–400 million, a dramatic fall from Unacademy’s $3.44 billion valuation in 2021. As part of the discussions, Unacademy’s AirLearn app would be spun off and handled separately.
Deal details at a glance
- Proposed price: $300–400 million
- Previous valuation: $3.44 billion (2021)
- Related move: AirLearn app to be carved out and spun off
Why the gap in valuation matters
The proposed purchase price reflects a sharp re-rating of the edtech sector since the pandemic-driven peak. Many companies that grew rapidly in 2020–2021 have faced slower user growth, higher costs, and tougher fundraising conditions. A much lower deal value suggests investors and buyers are recalibrating expectations for long-term profitability and scale.
AirLearn spin-off
AirLearn, which focuses on bite-sized learning and test-prep formats, is expected to be separated from the core business as part of the transaction. Spinning off a unit can allow both the acquirer and the standalone app to pursue distinct strategies, partnerships, or funding paths.
Possible implications
- Consolidation in the edtech market as larger players absorb competitors or complementary assets.
- Restructuring or refocusing of product portfolios to improve unit economics.
- Potential impact on employees, investors and course creators depending on integration plans.
What happens next
The talks are ongoing and any agreement would be subject to due diligence and final approvals. If completed, the deal would mark a notable shift in how prominent edtech companies are valued and combined in the current market environment.