Ronnie Screwvala co-founded upGrad has begun the method of buying Unacademy after signing a time period sheet for an all-stock transaction.

The businesses stated the deal can be executed by way of a share swap, although they declined to reveal the valuation till the transaction is accomplished and regulatory filings are made.

Asserting the event in a put up on X, upGrad co-founder Ronnie Screwvala stated the settlement features a break-fee clause if the deal doesn’t shut.

“We at upGrad have signed a time period sheet to accumulate Unacademy in an all-stock deal, with founder and CEO Gaurav Munjal staying on to construct Unacademy and concentrate on what it does finest, creating on-line schooling merchandise that learners love,” Screwvala wrote.

He added {that a} mixed entity may gain advantage from Unacademy’s product capabilities and upGrad’s broader studying ecosystem, which spans segments from school-level schooling to lifelong skilled studying.

We at upGrad have signed a time period sheet to accumulate Unacademy in an all-stock deal, with Founder and CEO @gauravmunjal staying on to construct Unacademy and concentrate on what it does finest, creating on-line schooling merchandise that learners love. We have now additionally agreed to a break payment had been we not…

— Ronnie Screwvala (@RonnieScrewvala) March 15, 2026

Unacademy co-founder Gaurav Munjal additionally confirmed the event, saying the proposed acquisition can be a “100% share-swap transaction”. He stated valuation particulars would solely be disclosed as soon as the deal is formally closed.

The settlement follows earlier discussions between the 2 corporations that collapsed in January after they did not agree on valuation expectations.

Whereas Munjal didn’t disclose the valuation, he stated in December that Unacademy was valued below $500 million, down from a peak of about $3.5 billion.

Refocusing the enterprise

Munjal stated Unacademy had spent the previous yr restructuring parts of its business because it refocused on its core on-line studying merchandise.

“We consolidated company-operated centres with franchise companions so we may refocus on what we do finest, constructing nice on-line schooling merchandise,” he stated.

He added that the corporate had accomplished a Rs 50 crore worker inventory possession plan (ESOP) buyback, with practically 40% of former staff taking part. Unacademy additionally at the moment holds greater than $100 million in cash reserves, he stated.

Submit-acquisition, Munjal will keep as a co-founder and CEO of Unacademy.

Unacademy and upGrad have signed a time period sheet for upGrad to accumulate Unacademy in a 100% share swap deal.

Neither facet will disclose the valuation till closing, when the papers are filed and the transaction turns into public.

Within the final one yr, so much has occurred at Unacademy:…

— Gaurav Munjal (@gauravmunjal) March 15, 2026

Based in 2015, Unacademy was one of many fastest-growing startups through the pandemic-driven growth in on-line schooling, although it has since narrowed its focus to its test-preparation enterprise amid tighter funding situations throughout the sector.

The corporate has undertaken cost-cutting measures in recent times, together with layoffs and operational restructuring, as edtech corporations adjusted after the surge in demand through the pandemic.

Monetary efficiency

Unacademy reported a 16% year-on-year decline in income to Rs 826.3 crore within the monetary yr ending March 2025, down from Rs 988 crore a yr earlier. Nevertheless, the corporate diminished its EBITDA loss by 38% to Rs 305 crore and reduce its web loss by 31% to Rs 436 crore.

Based on information platform Tracxn, Unacademy has raised about $880 million in funding and was final valued at roughly $3.5 billion in 2021. UpGrad has raised round $329 million and was final valued at about $2.25 billion in 2024.

Each corporations have additionally expanded by way of acquisitions. Unacademy has beforehand purchased startups together with PrepLadder, CodeChef and NeoStencil, whereas upGrad has acquired corporations reminiscent of Harappa Education, Talentedge, KnowledgeHut, Centum Studying and Internshala.