upGrad-Unacademy Deal: CCI Reviews Major EdTech Merger in India!

Key Summary

• upGrad has filed for CCI approval to acquire Unacademy in an all-stock deal. The transaction is still awaiting regulatory clearance.
• Unacademy is being valued at around ₹2,055 crore, or nearly $218 million, which is about 90% lower than its peak valuation of $3.4 billion in 2021.
• upGrad reported ₹1,943 crore gross revenue in FY25 and turned EBITDA positive with ₹15 crore profit, showing stronger financial discipline.
• Unacademy co-founder Sumit Jain has stepped down from his role as CEO of the test-prep business ahead of the expected merger.
• The upGrad-Unacademy Deal could reshape Bharat's edtech market by combining Unacademy’s test-prep strength with upGrad’s higher education and career upskilling ecosystem.

India’s edtech industry is set for a major change as upGrad’s proposed acquisition of Unacademy moves closer to completion. The two companies have filed an application with the Competition Commission of India, seeking antitrust approval for the merger. The deal is expected to be an all-stock transaction, with Unacademy valued at around ₹2,055 crore, or nearly $218 million.

The deal marks one of the biggest consolidation moves in India’s online education sector, bringing together two major but different edtech businesses: upGrad, known for higher education, professional courses and career upskilling, and Unacademy, known for online test preparation for competitive exams.

According to reports, the transaction is expected to close after regulatory approval. For now, the deal has not been completed and is awaiting CCI clearance.

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From UPSC Aspirants to Working Professionals: A New Education Funnel

upGrad-Unacademy partnership is special because Unacademy has built its brand around competitive exam preparation, including segments such as UPSC, IIT-JEE, NEET, CAT, GATE, CA, banking, judiciary and other test-prep categories. Its app listing describes it as a platform for major Indian exams and claims access to 10 million-plus learners.

upGrad, on the other hand, has focused more on higher education, professional certifications, degrees, enterprise learning and career-linked upskilling. In simple terms, Unacademy reaches students at the aspiration stage, while upGrad reaches learners at the career-building stage. If integrated effectively, the merged entity could build a powerful education funnel: exam preparation → college transition → skill development → degree/certification → job readiness → lifelong learning.

That is where this deal becomes more than a rescue or consolidation story. It could become a test case for whether Indian edtech can move from selling courses to owning the full learning lifecycle.

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upGrad’s Profitability Push Strengthens Its Position

The proposed deal comes at a time when upGrad has been highlighting stronger financial discipline. In FY25, upGrad reported gross revenue of ₹1,943 crore and turned EBITDA positive with ₹15 crore profit, compared with an EBITDA loss in the previous year.

The company also reported total income of ₹1,650 crore under Ind-AS accounting and collected but unrecognised revenue of ₹556 crore, indicating revenue visibility for future periods.

For the broader market, this is important because profitability has become the new benchmark in edtech. After the post-pandemic slowdown and investor caution, the companies that survive are likely to be those that can control burn, demonstrate learner outcomes, reduce customer acquisition costs and build repeatable revenue streams.

Leadership Change at Unacademy Before Deal

The deal comes at a time when Unacademy is also seeing leadership changes. Sumit Jain, co-founder and CEO of Unacademy’s test-prep division, has stepped down from his role ahead of the expected upGrad acquisition. Reports say he might continue as an advisor.

Leadership changes before a merger are not unusual. They often happen when companies prepare for new ownership, restructuring or business integration. In Unacademy’s case, the move may indicate that the company is preparing for a different operating structure after the merger.

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Why This Deal Matters for Students

For students, the deal may not bring any suddenn changes. Courses, teachers, subscriptions and app access are likely to continue as usual until the merger receives approval and integration begins.

But in the long run, the deal could change how learners use both platforms. A student preparing for a competitive exam on Unacademy may later get access to upGrad’s degree, certification or job-linked programmes. Similarly, upGrad could use Unacademy’s large learner base to expand into younger student segments.

This creates a possible education journey from exam preparation to higher education to career upskilling.

Why This Deal Matters for Bharat's EdTech Industry

The upGrad-Unacademy deal is not just about two companies. It reflects a larger correction in Indian edtech.

The sector is now moving away from high spending and fast expansion. Companies are focusing more on sustainable growth, profitability, hybrid learning, AI-based teaching tools, student retention and employability.

The deal also shows that stronger edtech companies may continue acquiring struggling or undervalued platforms to expand their reach. This could lead to more mergers in the sector.

What Happens Next?

The next major step is approval from the CCI. Until the approval is granted, the acquisition remains proposed. If approved, the merger could become one of the most important edtech deals in India after the post-pandemic correction.

For the Indian edtech sector, the message is clear: the market is entering a new phase. Growth alone is not enough anymore. Companies now need strong revenue, lower losses, trusted content, better technology and clear learning outcomes.

The upGrad-Unacademy deal may become a turning point in this new phase.