UpGrad in talks to acquire Unacademy for $300-400 mn

Edtech firm UpGrad is reportedly in advanced talks to acquire Unacademy in a deal that could value the test-prep company at $300-400 million, according to reports. 

The companies are expected to sign a term sheet within three weeks. 

The potential deal would mark a steep decline from Unacademy’s last publicly known valuation of $3.44 billion in 2021. As part of the proposed transaction, the company’s language-learning app AirLearn will be spun off as a separate entity, while the core test-prep business, including its network of offline learning centres, will be sold to UpGrad, the report added. The Edtech firm will not hold any equity in AirLearn.

Unacademy’s cash burn has fallen significantly over the past three years, from a peak of over Rs 1,000 crore annually to around Rs 100 crore at present. The company currently holds about Rs 1,200 crore in cash reserves, making it a potentially attractive acquisition target, the report noted.