In a major development in India’s education technology sector, Unacademy has been acquired by rival edtech company upGrad in a deal worth more than $200 million. The acquisition marks a major turning point for one of India’s most prominent edtech startups.The deal comes years after Unacademy reached a peak valuation of around $5.3 billion in 2021.The latest transaction values the company at nearly 94% below its peak valuation, highlighting the dramatic shift in the edtech market since the Covid-19 pandemic.
Unacademy co-founder Roman Saini reflected on the company’s journey in an emotional post on X. He recalled his early conversation with co-founder Gaurav Munjal while at LBSNAA, which eventually led him to leave the IAS and build Unacademy.The company witnessed explosive growth during the pandemic, when students across India turned to online education. At its peak, Unacademy was reportedly conducting around 1 lakh live classes every month, helping students prepare for government and competitive examinations from home.Saini also recalled meeting a CISF officer who recognised him during a flight and thanked Unacademy for allowing him to prepare for a government examination while continuing his job. According to Saini, such stories showed the impact the platform had on learners who could not attend traditional coaching centres.
However, the post-pandemic period proved challenging. As students gradually returned to physical classrooms, demand for online learning declined. Unacademy’s rapid expansion, high spending and entry into multiple business segments became difficult to sustain amid a tougher funding environment.The company subsequently focused on reducing expenses, laid off employees and shut down or scaled back several businesses.The acquisition by upGrad now marks a new chapter for Unacademy, which grew from a small online teaching platform into one of India’s biggest names in the edtech industry before facing the realities of a rapidly changing market
