The Unacademy merger with edtech rival upGrad is nearing its close, valued at ₹1,955 crore in a 100% all-stock transaction, as publicly reported on 2026-07-28. Unacademy (operated by Sorting Hat Technologies Private Limited), headquartered in Bengaluru, Karnataka, will be absorbed into the upGrad group in what is being described as one of the largest consolidation moves in India’s edtech sector. As part of the deal, Unacademy’s existing investors are set to receive one board seat at upGrad once the transaction is completed.
Quick Highlights
- Acquirer: upGrad
- Target: Unacademy (Sorting Hat Technologies Private Limited)
- Deal Value: ₹1,955 crore (all-stock transaction)
- Founders: Gaurav Munjal, Roman Saini, Hemesh Singh
- Headquarters: Bengaluru, Karnataka
- Announcement Date: 2026-07-28
Deal Breakdown
Deal Rationale
The deal allows upGrad to enter the K-12 and test preparation segment through Unacademy, while also strengthening its broader presence across online education, as publicly reported. The combination brings together upGrad’s higher-education and upskilling business with Unacademy’s test-prep and learning platform assets. Unacademy co-founder and CEO Gaurav Munjal will continue to lead Unacademy after the acquisition closes.
Deal Structure
The transaction is structured as a 100% share-swap, with the final deal value revised to ₹1,955 crore — ₹100 crore lower than the earlier figure of ₹2,055 crore discussed when the deal was first announced. The Competition Commission of India (CCI) cleared the transaction on July 7, and almost all institutional investors have signed share subscription agreements, with angel investors executing share purchase agreements. The deal also includes a ₹45 crore ESOP payout to Unacademy employees. Unacademy’s existing investors will receive one board seat at upGrad upon completion of the transaction.
Expansion Plans
Following the acquisition, upGrad is consolidating operations across its newly combined portfolio. PrepLadder’s headquarters has already been shifted from Chandigarh to Bengaluru, and Unacademy, PrepLadder, Airlearn, and Graphy will all operate from Bengaluru going forward. Language learning platform Airlearn, which was incubated within Unacademy, will also move under the upGrad umbrella as part of the transaction. upGrad has internally estimated that the acquisition will add approximately ₹500 crore to its consolidated revenue.
Significance
This Unacademy merger marks a defining moment in India’s edtech landscape, representing the first major all-stock consolidation between two significant Indian edtech unicorns. The deal reflects a broader industry correction following the pandemic-era online education boom, as companies now prioritise scale, operational efficiency, and profitability over aggressive capital deployment. The board-seat arrangement for Unacademy’s investors — a group that includes Peak XV Partners, Blume Ventures, Elevation Capital, SoftBank, Tiger Global, and General Atlantic — provides formal governance representation in the combined entity and signals a maturing approach to large-scale startup M&A in India. For the wider edtech sector, the merger underscores how leading players are pursuing consolidation to navigate a prolonged funding slowdown and build sustainable businesses.
These details have been verified against multiple publicly available reports as of 2026-07-28.
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Disclaimer: This report is compiled from publicly available sources and is for informational purposes only; funding figures are as publicly reported and may be subject to change.
