UpGrad's plans to buy Unacademy fold on valuations

BENGALURU: Discussions between edtech firms Unacademy and UpGrad for a potential acquisition fell through after the two sides failed to reach an agreement on valuation, people familiar with the matter said. UpGrad had been in early stage buyout talks with Unacademy, but the discussions collapsed.

Confirming the development to TOI, Ronnie Screwvala, founder of UpGrad, said the talks were at a preliminary stage and were called off after valuation expectations did not align. "We were in early discussions, and we could not come to terms on valuation. Both sides felt it was better to stop at this stage," Screwvala said.

The discussions centred on a possible acquisition of Unacademy, with sources indicating that the proposed structure involved Unacademy's investors receiving a minority stake in UpGrad. However, the talks did not progress to a final agreement on valuation or deal terms. UpGrad was said to be valuing Unacademy significantly below its peak valuation during the funding boom, a gap that ultimately proved difficult to bridge. Unacademy also saw recent leadership changes, with its co-founders stepping back from day-to-day operational roles. Unacademy founder Gaurav Munjal did not respond to text messages seeking comment.