New Delhi, March 16 UpGrad, a major edtech company led by Ronnie Screwvala, is set to acquire Unacademy in a deal involving a 100 per cent share swap, all-stock transaction.
Under the agreement, Unacademy co-founder Gaurav Munjal will continue to lead the company as CEO, focusing on online education products and global expansion.
"Unacademy and upGrad have signed a term sheet for upGrad to acquire Unacademy in a 100 per cent share swap deal. Neither side will disclose the valuation until the deal closes, when the papers are filed and the transaction becomes public. I will be staying on as Co-Founder and CEO of Unacademy – with the goal of building great online products for learners in India and globally," Gaurav Munjal, CEO of Unacademy, said in a post on X.
Ronnie Screwvala, Co-Founder of upGrad, said the deal includes a "break fee" should the acquisition fail to close.
Munjal noted that Unacademy currently holds cash reserves of over USD 100 million and has recently refocused its operations by consolidating company-operated centers with franchise partners.
He also noted the growth of Airlearn – the company’s global product – which is currently gaining traction in markets like the US, Germany, and the UK.
"Unacademy helped create the Modern EdTech Playbook. Along the way, we lost some focus and market share, and the sector itself has not seen enough real product innovation in recent years. AI will fundamentally reshape education, and EdTech may become one of its biggest beneficiaries," Munjal said, adding that the partnership with upGrad will allow the entity to "build great products from K12 to forever learning."