Ronnie Screwvala-Led upGrad Moves Closer to Creating India’s First Combined Edtech Unicorn
The Competition Commission of India (CCI) has approved upGrad’s proposed acquisition of Unacademy, clearing a major regulatory hurdle for one of the biggest consolidation deals in India’s edtech sector. The approval paves the way for Ronnie Screwvala led upGrad to complete the acquisition of fellow edtech unicorn Unacademy, creating what is expected to be India’s first merger between two unicorns in the online education space.
According to a statement issued by the competition watchdog, the regulator has approved the acquisition of certain shareholding in Sorting Hat Technologies Private Limited, the parent company of Unacademy, followed by its merger into upGrad Education Private Limited.
The transaction comes amid a broader wave of consolidation in India’s edtech industry, where companies are increasingly focusing on profitability, operational efficiency, and sustainable growth.
CCI Clears the Proposed Acquisition
The regulatory approval comes nearly two months after upGrad filed its merger application with the Competition Commission of India.
Earlier this year, in March, upGrad signed a term sheet to acquire Unacademy in a deal reportedly valued at around ₹2,055 crore (approximately $218 million).
With the CCI now approving the transaction, the companies can move toward completing the merger, subject to the remaining procedural formalities.
The combination is expected to significantly strengthen upGrad’s presence across higher education, professional upskilling, competitive exam preparation, and online learning.
A Landmark Deal for India’s Edtech Sector
The proposed transaction is expected to create the country’s first combined edtech unicorn, bringing together two of India’s most recognized education technology companies.
Founded in 2015, upGrad has built its business around higher education, executive learning, professional certification programmes, and career focused upskilling.
Unacademy, meanwhile, has established itself as one of India’s leading online learning platforms for competitive examinations, government test preparation, and professional education.
The merger is expected to create a broader education ecosystem serving learners across multiple age groups and career stages.
Industry observers believe the deal reflects the ongoing shift toward consolidation following several years of rapid expansion across the edtech industry.
upGrad Strengthens Financial Position
The acquisition announcement follows a period of improving financial performance for upGrad.
In May 2026, the company raised ₹361 crore (around $38 million) in a funding round led by co-founder and chairman Ronnie Screwvala.
Existing investors including Temasek, the International Finance Corporation (IFC), and 360 ONE Opportunities Fund also participated in the investment.
Following the funding round, upGrad’s valuation stood at approximately $1.73 billion, reinforcing its position among India’s leading edtech companies.
Company Returns to Profitability
Alongside fundraising, upGrad has also demonstrated a significant improvement in its financial performance.
According to provisional financial figures, the company reported a profit after tax (PAT) of ₹38.8 crore during the 11-month period ended February 2026, compared with a loss of ₹273.7 crore in FY25.
The company also turned EBITDA positive, reporting ₹56.9 crore compared to a negative ₹65.4 crore in the previous fiscal year.
Revenue from operations stood at ₹1,531.7 crore during the reporting period, reflecting continued business growth alongside improved operational efficiency.
The improving financial profile is expected to strengthen the company’s position as it integrates Unacademy into its broader education platform.
Consolidation Reshapes India’s Edtech Industry
India’s edtech sector has undergone significant transformation over the past two years.
After experiencing rapid growth during the pandemic, many education technology companies have shifted their focus from aggressive expansion to profitability, operational discipline, and sustainable business models.
The proposed combination of upGrad and Unacademy reflects this broader industry trend, with larger platforms seeking scale through strategic acquisitions rather than organic expansion alone.
The combined business is expected to leverage complementary strengths across higher education, professional learning, test preparation, enterprise learning, and technology-driven education delivery.
What Lies Ahead?
The CCI approval marks a major milestone for the transaction, bringing the acquisition closer to completion.
Once finalized, the combined entity is expected to become one of India’s largest education technology companies, serving millions of learners across diverse educational categories.
With upGrad already reporting improved profitability and Unacademy bringing a strong presence in competitive exam preparation, the merger has the potential to create a more diversified and financially resilient edtech platform.
As India’s education sector continues embracing digital learning, strategic consolidation is likely to play an increasingly important role in shaping the industry’s future.
The upGrad-Unacademy transaction represents one of the most significant deals in the sector, highlighting renewed confidence in long-term opportunities within India’s rapidly evolving digital education ecosystem.
Follow Startup Now Daily for the latest updates on startups, funding, acquisitions, IPOs, technology, and India’s rapidly evolving business ecosystem.
