CCI okays upGrad-Unacademy merger, clears path for major edtech consolidation; details here
The Competition Commission of India (CCI) has approved upGrad’s acquisition of certain shareholding in Unacademy's parent company, Sorting Hat Technologies Private Limited, along with the
The Competition Commission of India (CCI) has approved upGrad’s acquisition of certain shareholding in Unacademy's parent company, Sorting Hat Technologies Private Limited, along with the subsequent merger of Sorting Hat into upGrad Education Private Limited. “The proposed combination relates to the acquisition of shareholding in Sorting Hat Technologies Private Limited (Target) and its merger with and into upGrad Education Private Limited (Acquirer),” the competition watchdog said in an official statement released on Tuesday. It also noted that a detailed order of the commission will follow. The CCI's nod comes nearly two months after upGrad filed its merger application in May for the proposed acquisition of Unacademy, according to media reports. Changing environment in edtech sector The clearance paves the way for one of the biggest consolidation moves in India’s edtech sector, as companies adapt to a post-pandemic market marked by slower growth and a greater focus on profitability.
Founded in 2015, Unacademy witnessed rapid growth during the pandemic as demand for online education grew among students. The Bengaluru-based company built a strong presence in test preparation for competitive exams, entrance and recruitment tests. Unacademy to be acquired at over 90% below its 2021 valuation upGrad is acquiring Unacademy at a more than 90% markdown from its 2021 valuation and also below what it was willing to accept in the previous round of negotiations, Mint reported earlier, citing people aware of the matter. The all-stock deal is likely to value Unacademy at around ₹2,055 crore, the news report stated. The edtech firm was valued at $3.4 billion in 2021, and upGrad had proposed a valuation of $300–400 million in November last year before the talks collapsed in January 2026.
Senior leadership exits upGrad amid Unacademy integration In a separate development, the online education and skilling platform upGrad also witnessed senior-level exits while it is in the process of integrating Unacademy following the acquisition of the K-12 edtech startup and prepares for a potential public listing next year. Also Read | Lockheed Martin to acquire Ultra Maritime in $3.45 billion deal The Ronnie Screwvala- group’s chief financial officer (CFO), Venkatesh Tarakkad, and upGrad Enterprise chief executive officer (CEO), Srikanth Iyengar, among others, are on their way out, Mint reported in April. upGrad Enterprise provides skilling and workforce training programmes to businesses, helping them address skill gaps through courses tailored to their organisational needs, a senior former employee told Mint.
The BriefWire