Unacademy, a prominent Indian edtech startup, has been acquired by rival upGrad in an all-stock deal valuing Unacademy at approximately $206 million, representing a significant decline from its peak valuation of $3.44 billion in 2021, according to a TechCrunch report. The transaction, which closed nearly six months after its initial announcement in March, involves Unacademy shareholders receiving upGrad shares, while angel investors were cashed out at closing, as stated by upGrad’s co-founder and chairperson, Ronnie Screwvala.

Despite maintaining a cash reserve of about $94.8 million and annual revenue of roughly $42.13 million, with most businesses either profitable or nearing profitability, Unacademy’s leadership opted for the acquisition. Co-founder and CEO Gaurav Munjal acknowledged the stark contrast between the company’s peak valuation and the sale price, emphasizing that the decision was not forced. The acquisition is partly motivated by Unacademy’s belief that achieving further scale or a potential public listing would necessitate expansion into additional education sectors, an opportunity presented by upGrad’s stronger offline education presence, according to sources familiar with the matter. The deal encompasses Unacademy’s language-learning app, Airlearn, and the Unacademy brand will be retained, with Munjal continuing as CEO to lead the business’s online operations and Airlearn development. No layoffs are planned, and the Unacademy Group, including subsidiaries PrepLadder and Graphy, employs around 1,000 people. Source

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