upGrad to acquire Unacademy in all-stock deal

Edtech major upGrad is consolidating its position in India's online education sector by signing a term sheet to acquire rival Unacademy in a 100 per cent share-swap transaction. The deal is aimed to merge operations while keeping Unacademy's founder Gaurav Munjal at the helm. Gaurav Munjal also confirmed he would continue as CEO and praised upGrad's journey.

Announcing the development on X, upGrad chairman Ronnie Screwvala said the agreement includes a break fee in case the deal does not close.

"We at upGrad have signed a term sheet to acquire Unacademy in an all-stock deal, with Founder and CEO Gaurav Munjal staying on to build Unacademy and focus on what it does best, creating online education products that learners love. We have also agreed to a break fee were we not close," Screwvala said.

He further added, "They disrupted the sector once, and now with AI they plan to do it again. We are already seeing Airlearn gain global traction. If this closes. upGrad’s integrated model with an expanded focus from K12 to forever learning will be on a strong trajectory."

Munjal also posted on X, "Unacademy and upGrad have signed a term sheet for upGrad to acquire Unacademy in a 100% share swap deal. I will be staying back as Co-Founder and CEO Unacademy - with the Goal to build Great Online Products for Learners in India and Globally".

Valuation details will remain confidential until the deal is formally closed and publicly filed.