UpGrad Walks Away From Unacademy Acquisition Talks Over Valuation Differences

UpGrad has decided to step away from acquisition discussions with Unacademy, bringing an end to one of the most closely followed deal talks in India’s edtech sector. The negotiations reportedly collapsed due to differences over valuation, with both sides unable to reach common ground.

UpGrad founder Ronnie Screwvala confirmed that the company would not be proceeding with the proposed transaction, citing an inability to agree on valuation benchmarks. While specific figures were not disclosed, the valuation gap was understood to be significant.

The proposed deal was structured as an all-stock transaction and was said to value Unacademy at around $300 million, a steep drop from its peak valuation of approximately $3.4 billion in 2021. UpGrad, meanwhile, has been pegging its own valuation at close to $2.25 billion, making alignment on terms difficult.

The development marks another unsuccessful acquisition attempt for Unacademy. In 2024, talks with a major coaching institute also failed to materialise after differences emerged over valuation expectations, underscoring the challenges facing consolidation in the edtech space.

The collapse of the talks comes at a sensitive time for Unacademy, which has been navigating operational restructuring and internal policy changes amid a broader slowdown in the online education market. Industry observers say the outcome reflects a more cautious approach to mergers and acquisitions, as startups recalibrate growth strategies in a tighter funding environment.