India’s online education industry could soon see a major shift. upGrad, the edtech company co-founded by Ronnie Screwvala, has started the process to acquire fellow learning platform Unacademy. The companies have signed a term sheet for the deal, which will be carried out as an all-stock transaction.
While both companies confirmed the agreement, they have not revealed the valuation of the deal yet. According to the founders, the numbers will only be disclosed once the acquisition is officially completed and all regulatory filings are done.
The development was announced by Ronnie Screwvala himself in a post on X, where he shared that the agreement includes a break-fee clause in case the transaction does not close.
This potential acquisition could mark one of the most notable consolidations in India’s fast-evolving edtech sector.
What the Deal Between upGrad and Unacademy Looks Like
The acquisition will take place through a share swap arrangement. In simple terms, instead of paying cash, upGrad will exchange its own shares with Unacademy’s shareholders.
This kind of structure allows both companies’ stakeholders to become part of the combined entity, aligning long-term interests.
Although the exact valuation is still under wraps, the deal structure suggests that both companies see long-term value in joining forces rather than treating the transaction as a traditional buyout.
Another important detail mentioned by Screwvala is the inclusion of a break-fee clause. This means if the deal falls apart before completion, the party responsible for the cancellation may have to pay a financial penalty.
Such clauses are often used in large corporate deals to ensure both sides stay committed throughout the negotiation and regulatory process.
Gaurav Munjal to Continue Leading Unacademy
One key point highlighted in the announcement is that Unacademy’s founder and CEO, Gaurav Munjal, will remain involved even after the acquisition.
According to Ronnie Screwvala’s statement, Munjal will continue to lead Unacademy and focus on building online education products that learners genuinely enjoy.
Instead of shutting down or fully merging the brand, the plan appears to be allowing Unacademy to keep operating in its core areas while benefiting from upGrad’s resources and infrastructure.
This approach could help maintain the identity and strengths of both companies.
Ronnie Screwvala Shares Details on X
Ronnie Screwvala shared the update through a post on X, explaining the vision behind the deal.
In his message, he said that upGrad has signed a term sheet to acquire Unacademy through an all-stock agreement. He also confirmed that Munjal will stay on to continue developing the platform and its learning products.
Screwvala emphasized the goal of creating online education experiences that students love while expanding the reach and impact of digital learning.
The announcement quickly drew attention from industry watchers and the broader startup ecosystem.
Why This Deal Matters for India’s EdTech Industry
India’s edtech sector has experienced massive growth over the past decade, especially during the pandemic when online learning became the norm.
However, the industry has also gone through a period of correction. Many companies have had to rethink their strategies, reduce spending, and focus on sustainable growth rather than rapid expansion.
If completed, the upGrad-Unacademy deal could signal a new phase of consolidation in the edtech space.
Instead of multiple platforms competing for the same learners, companies may begin joining forces to strengthen their offerings and improve efficiency.
A Look at upGrad’s Growth Journey
Founded in 2015, upGrad has built its reputation by focusing on higher education, professional courses, and career-oriented programs.
The company collaborates with universities and industry experts to offer courses in fields such as data science, management, technology, and digital marketing.
Over the years, upGrad has expanded its global footprint and made several acquisitions to grow its capabilities in online learning.
This potential acquisition of Unacademy would add another major player to its portfolio.
Unacademy’s Role in the Online Learning Ecosystem
Unacademy began as a YouTube channel before evolving into one of India’s most recognized online learning platforms.
The company became particularly popular for its test preparation courses, helping students prepare for competitive exams such as UPSC, IIT-JEE, NEET, and other government exams.
Unacademy built a strong community of educators and learners through its live classes, subscription model, and learning apps.
However, like many edtech companies, it has faced challenges in recent years as the market adjusted after the pandemic boom.
Joining hands with upGrad could provide the support and stability needed for its next phase of growth.
What Could Change After the Acquisition
If the acquisition goes through, the partnership could create several new opportunities.
For learners, it might mean access to a wider range of courses across different education segments. Students preparing for exams through Unacademy could eventually benefit from upGrad’s career-focused programs.
For the companies, the deal could help them share technology, educator networks, and market reach.
The combined strength of both platforms could also help them compete more effectively with other global and Indian edtech companies.
The Deal Is Still Not Final Yet
Even though the term sheet has been signed, the acquisition is not complete yet.
The companies will still need to go through due diligence, finalize the terms, and complete regulatory approvals before officially closing the deal.
Only after that will the final valuation and other financial details be made public.
Until then, the industry will be watching closely to see how the process unfolds.
What This Means for the Future of Online Education
The possible merger of upGrad and Unacademy reflects a broader trend in the edtech world.
Companies are increasingly focusing on building sustainable business models rather than chasing rapid growth at any cost.
By combining strengths, platforms can offer better learning experiences while managing costs more effectively.
If successful, this deal could become a turning point for India’s digital education landscape, showing how collaboration may shape the next chapter of online learning.
