CCI Clears upGrad’s Unacademy Acquisition

The Competition Commission of India (CCI) has approved edtech major upGrad’s proposed acquisition of Unacademy. The competition watchdog approved the proposed combination under Section 31(1) of the Competition Act, 2002, at a meeting held on the same day.

upGrad had announced the acquisition of Unacademy in April this year, marking its entry into the premium higher education and global admissions consulting space.

The acquisition, which is structured as an all-stock deal, will value Unacademy at a valuation of about ₹2,055 Cr ($218 Mn), nearly 90% lower than Unacademy’s peak valuation.

Earlier, sources had told Inc42 that Unacademy was expected to have ₹900 Cr-950 Cr in cash on its books when the transaction closed. 

The acquisition adds on to upGrad’s amalgamation streak in recent times. Prior to Unacademy, the Ronnie Screwvala-led startup acquired internships and careers platform Internshala. Overall, since 2022, the startup has acquired more than half a dozen companies as part of its inorganic growth strategy.

Important to highlight that the amalgamation deal materialised after months of negotiations between the two companies which centred largely around the valuation of the acquired business. 

Unacademy cofounder and CEO Gaurav Munjal had erstwhile mentioned that the unicorn had signed a term sheet to acquire the startup after earlier merger talks had fallen through over valuation differences. 

To note, the amalgamation will allow upGrad to enter the K12 and exam prep segment.

upGrad also recently turned profitable, reporting a PAT of ₹38 Cr on provisional revenue of ₹1,532 Cr in the first 11 months of FY26. It was expecting to close FY26 with revenue of around ₹1,972 Cr and PAT of more than ₹60 Cr.

It is expecting the Unacademy acquisition to add about ₹500 Cr to its consolidated revenue.

Founded in 2010 by Gaurav Munjal, Roman Saini and Hemesh Singh, Unacademy raised about $830 Mn from investors including Peak XV Partners, Blume Ventures and Elevation Capital. It commanded a valuation of $3.4 Bn in 2021.

However, the startup witnessed a business slowdown, which has been impacting the Indian edtech sector post-pandemic. Unacademy restructured its business amid the slowdown by exiting its offline business, buying back ESOPs worth ₹50 Cr and focusing on a more capital-efficient operating model.

The Unacademy deal comes as India’s edtech sector continues to witness consolidation following the post-pandemic slowdown, with companies focusing on profitability and scale through acquisitions.

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