upGrad Acquires Unacademy for $200 Million
Edtech firm upGrad has acquired rival Unacademy in an all-stock deal worth just over $200 million, a 94% drop from Unacademy's 2021 peak valuation.
Edtech platform upGrad has officially acquired rival Unacademy in a deal valued at just over $200 million. The all-stock transaction represents a 94% discount from Unacademy's peak valuation of $3.5 billion in 2021.
After months of negotiations and regulatory approvals, the deal is now sealed. upGrad CEO Ronnie Screwvala described the acquisition as six years in the making. For Unacademy, the combination offers a potential growth trajectory after a period of struggle.
Strategic Rationale
The acquisition provides upGrad, which focuses on professional upskilling, with a significant foothold in the K-12 and competitive exam preparation markets. Screwvala highlighted Unacademy's technology stack, brand equity, and the global potential of its language-learning app, Airlearn, as key drivers for the deal.
For Unacademy, combining forces with upGrad provides access to a larger upskilling network, expertise, and financial resources to explore new avenues. Unacademy CEO Gaurav Munjal will retain his role to lead the platform's core verticals, while shareholders will receive a stake in the combined upGrad entity.
Unacademy's Journey
Unacademy's path to acquisition was turbulent. Starting as a YouTube channel in 2015, it raised $600 million during the peak of the pandemic to build a major edtech presence. The subsequent reopening of offline institutions hit demand hard.
The company responded with layoffs, burn reduction, and the shutdown of several verticals. It explored potential sales to other entities like Allen and K-12 Techno, but discussions failed over valuation disagreements before a term sheet was finally signed with upGrad.
Execution Challenges Ahead
Integrating two distinct corporate cultures and operating models presents an immediate challenge for upGrad's leadership. The merged entity must also prove that Unacademy's extensive consumer reach can be leveraged to drive sustainable operating margins.
Ultimately, the combined company must justify the $200 million price tag. The work to unlock value from the acquisition begins now.
Other Funding and Market News
The source report also contained updates on other startups and market activity.
Yuma Energy, a battery swapping platform founded in 2023 as a joint venture between Magna and Yulu, has raised $35 million (approximately ₹333 crore) in a Series A round from existing backer Magna International. The funds are for expanding its footprint, diversifying its client base, and strengthening its technology platform. Yuma operates more than 2,500 charging stations across 18 Indian cities and has accumulated a large number of batteries.
Enterprise cloud and AI company ESDS wrapped up a bumper initial public offering. Its ₹720 crore IPO, comprising entirely a fresh issue of shares priced between ₹408 and ₹429 per share, was subscribed 135.88 times on the final day of bidding.
| Investor Category | Subscription Multiple |
|---|---|
| QIBs | 261.5X |
| NIIs | 192.9X |
| Retail Investors | 39.7X |
In contrast, Purple Style Labs' IPO was subscribed only 24% on its second day of bidding. Retail investors led with 93% subscription, followed by non-institutional investors at 13% and qualified institutional buyers at 6%.
Leadership and Strategy Shifts
In other news, Anand Subbaraman stepped down as CEO of SaaS giant Icertis in July. His departure followed whistleblower complaints received by the company's board in May, which alleged misconduct, inappropriate behaviour, and favouritism towards a junior employee. An internal probe was conducted. CFO Rajat Bahri and board member Jim Moffatt have been appointed interim co-CEOs while the company searches for a permanent successor. This development comes as Icertis is reportedly working with Goldman Sachs to explore a potential sale at around a $5 billion valuation.
Vietnamese electric vehicle manufacturer VinFast has directed its suppliers in India to halt production of select cars. The move is part of a reassessment of costs, as the company could not achieve its planned costs for developing and sourcing parts locally. VinFast has sought details of investments already made by suppliers for three vehicle programmes. It remains unclear if vendors will be compensated for tooling, engineering, and other investments. Last year, VinFast had planned to boost annual EV production in India for exports to the Middle East and Africa, banking on local manufacturing to reduce costs.
