Indian regulator approves upGrad's acquisition of Unacademy

India's Competition Commission (CCI) has approved edtech company upGrad's proposed acquisition of Unacademy. The approval marks a significant step towards the finalization of a deal aimed at broadening upGrad's educational technology services, particularly in higher education and global admissions consulting.

upGrad had announced its intention to acquire Unacademy in April. The transaction, structured as an all-stock deal, values Unacademy at approximately ₹2,055 crore ($218 million), a notable decrease from its peak valuation. This acquisition is part of upGrad's ongoing inorganic growth strategy, which has seen several recent acquisitions. The deal follows months of negotiations, primarily centered on the valuation of the acquired business.

The acquisition will enable upGrad to enter the K12 and test preparation segments. The company has also recently focused on improving its profitability. upGrad anticipates the Unacademy acquisition will contribute an additional ₹500 crore to its consolidated revenue.

Unacademy, founded in 2010, had previously reached a valuation of $3.4 billion in 2021. However, the company, like others in India's edtech sector, has faced a slowdown in business post-pandemic. Unacademy has restructured its operations, exiting its offline business and focusing on a more capital-efficient model. This deal reflects broader consolidation trends within the Indian edtech industry, where companies are pursuing scale and profitability through acquisitions.