Acquisition discussions between upGrad and Unacademy have been called off after the two sides failed to agree on valuation, according to sources familiar with the matter. The talks had drawn significant attention amid accelerating consolidation in India’s edtech sector.
Confirming the development, Ronnie Screwvala, co-founder of upGrad, told Entrackr that the companies decided not to proceed due to valuation differences, adding that a mutually acceptable number could not be reached.
The discussions came at a time when Unacademy has been undergoing internal restructuring, including cost rationalisation and a renewed focus on its core test-preparation business. Earlier, Gaurav Munjal, co-founder and CEO of Unacademy, had acknowledged that the company was evaluating multiple strategic options such as fundraising and potential mergers or acquisitions, while stressing that no final decision had been made.
Separately, Unacademy has paused proposed changes to its 2018 ESOS scheme following strong objections from former employees. Concerns were raised around tax liabilities and limited liquidity when exercising stock options at sharply reduced valuations compared to earlier funding rounds.
Founded in 2015, Unacademy has raised over $800 million from investors including SoftBank, General Atlantic, and Tiger Global, and was last valued at about $3.4 billion during the peak of the edtech boom. Like many peers, it is now recalibrating amid a prolonged funding slowdown.
upGrad, which operates across higher education, upskilling, and overseas education, has previously pursued selective acquisitions to strengthen its portfolio, but the Unacademy deal will not be moving forward.
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