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UpGrad Ends Unacademy Deal Talks Over Valuation Gap

The move follows months of negotiations with price expectations that diverged during an edtech valuation reset.

Overview

  • UpGrad co-founder Ronnie Screwvala confirmed the talks have been called off, citing an inability to agree on valuation.
  • Reports during negotiations indicated an all-stock proposal that valued Unacademy at roughly $300–$400 million, far below its 2021 peak of about $3.4 billion.
  • Sources also reported unconfirmed elements such as a potential AirLearn spin-off and Unacademy investors receiving a minority stake in the acquirer.
  • Unacademy recently proposed shortening the ESOP exercise window for former employees to 30 days, then put the amendments on hold after backlash.
  • People familiar with the talks said UpGrad flagged business challenges at Unacademy, even as upGrad considers other acquisitions and a possible IPO and Unacademy weighs alternative options.