Ronnie Screwvala’s UpGrad in advanced talks to acquire Unacademy for $300–400 million

In a potential shake-up within India’s edtech sector, UpGrad, co-founded by Ronnie Screwvala, is in advanced discussions to acquire Unacademy in a deal valued between $300 million and $400 million, according to a report by Moneycontrol, citing people familiar with the matter.

Sources indicated that the two companies are expected to sign a term sheet within the next three weeks, although both Screwvala and Unacademy co-founder Gaurav Munjal declined to comment on the ongoing discussions. The proposed deal marks a steep drop from Unacademy’s previous valuation of $3.44 billion in 2021, reflecting the cooling of valuations across the edtech landscape following the post-pandemic correction.

As part of the proposed transaction, Unacademy’s language-learning app AirLearn will be carved out as a separate entity, while the core test-prep business, including its expanding network of offline learning centres, will be sold to UpGrad. The sources also noted that UpGrad will not hold any equity in AirLearn.

Unacademy’s financial performance has shown significant improvement in recent years. Its annual cash burn has reportedly fallen from over ₹1,000 crore to about ₹100 crore, while the company currently holds around ₹1,200 crore in cash reserves, making it a financially attractive acquisition target. The talks come months after Moneycontrol reported in May 2025 that Unacademy’s founders Gaurav Munjal and Roman

Saini were planning to step back from daily operations and spin off AirLearn into a standalone venture. At the time, the company’s board had directed them to first stabilise operations and reduce cash outflows before initiating leadership transitions.

That transition has since progressed, with Sumit Jain, co-founder of CommonFloor (which Unacademy had acquired), appointed as CEO of Unacademy’s test-prep division in September. Jain has since led the company’s offline expansion and profitability efforts, marking a strategic pivot in its growth trajectory.

For UpGrad, which has a strong presence in higher education and professional skilling, the potential acquisition represents one of the largest consolidation deals in India’s edtech sector this year. The move aligns with UpGrad’s ongoing acquisition strategy to broaden its learning ecosystem across degree, test-prep, and professional development categories.

If finalised, the deal would significantly expand UpGrad’s footprint in the competitive exams and K-12 segments through Unacademy’s extensive offline centres in Kota, Delhi, and other key cities, strengthening its position as a full-stack learning platform in the evolving edtech market.