Unacademy, the prominent Indian edtech company, has finalized its acquisition by UpGrad for just over $200 million. This deal comes after Unacademy had reached a peak valuation of $3.44 billion, a stark contrast acknowledged by its co-founder and CEO, Gaurav Munjal.
CEO Gaurav Munjal on the Acquisition
On Tuesday, Munjal took to X (formerly Twitter) to confirm the acquisition, stating, "We raised at a peak, but sold at a fraction of that. I'm not going to dress these facts up. But I am proud of what this team did between those two numbers." The acquisition by Ronnie Screwvala-led UpGrad concluded following months of negotiation.
Six years prior, Unacademy had achieved unicorn status, symbolizing its rapid rise in the online education sector. Munjal reflected on the company's mission to democratize education, noting that while they may not have captured all the economic value, they significantly transformed online learning in India.
Unacademy's Impact and Financial Health
Munjal highlighted several achievements, including the creation of a generation of "celebrity educators" through their free platform, whose YouTube videos amassed over 10 billion views. Additionally, Airlearn, another Unacademy venture, became one of the world's top three most-downloaded language-learning applications within two years. "We always wanted to build a global consumer product out of India. We did," Munjal proudly stated.
Despite the significant valuation decrease leading to the UpGrad deal, Munjal emphasized that Unacademy was not in a distressed financial position. He reported a topline of approximately ₹400 crore, with most of its businesses being profitable or nearing profitability, and a substantial ₹900 crore in the bank. This financial stability meant the company had every option to continue operating independently.
Strategic Move for the Ecosystem
The decision to sell was not driven by necessity but by strategic opportunity. Munjal explained, "Nobody was forcing this. But sometimes, you are drawn towards a path that is more exciting than the one that makes you more money." He cited his admiration for Ronnie Screwvala's work in higher education and his vision for the future of education in India and globally as key motivators.
The extended negotiation period allowed both parties to thoroughly consider the merger. Munjal concluded that the combination with UpGrad represented a "better path for the ecosystem, not just for us," expressing optimism that Unacademy shareholders would ultimately gain "immense value" from the merger.