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UpGrad’s negotiations to acquire Unacademy fall through over valuation
- IBJ Bureau
- Jan 09, 2026
UpGrad has abandoned talks to buy Unacademy due to significant disagreements on valuation. Despite months of negotiations, Unacademy’s sharp drop in valuation from its peak has resulted in Ronnie Screwvala- led higher education platform Upgrade walking out of the negotiations.
The primary sticking point was Unacademy’s asking price, with the company seeking valuation in the range of $300-400 million. This valuation is, in fact, a steep fall from its valuation of $3.5 billion in 2021.
The specific valuation that upGrad was prepared to offer remains undisclosed, but it was evidently insufficient to secure the deal. UpGrad founder Ronnie Screwvala has confirmed that the talks ended because of differences in valuation.
The breakdown occurs within a tough funding environment for edtech, with both the companies navigating major shifts. Amid these talks, Unacademy had confirmed going in for restructuring, with co-founders stepping back from daily operations.
Unacademy has been exploring potential M&A activities for over a year amid the edtech sector’s slowdown. Previously, it was reported that Allen was in talks to acquire Unacademy for $800 million, a deal that was denied by Gaurav Munjal, the co-founder and CEO of Unacademy, at that time. This latest setback for a potential acquisition highlights the persistent challenges in the current edtech investment climate.
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