UpGrad-Unacademy deal called off; uncertainty over Gaurav Munjal’s new start-up: Report

Acquisition discussions between Unacademy and upGrad, which had been ongoing for several months, reportedly ended after both parties failed to reach consensus on valuation and deal structure. This development has now cast uncertainty about the Unacademy founders’ plans for new ventures and potential funding. 

According to a report in Moneycontrol, the talks had reportedly centred on valuing Unacademy at $300-400 million, with both companies exploring possible synergies. 

Unacademy’s co-founders Gaurav Munjal and Roman Saini were reportedly in discussions to raise around $17 million from Peak XV Partners and Blume Ventures, both early backers of the company, as well as several prominent founders. The proposed investment was contingent upon the outcome of the acquisition talks, the report stated. 

People aware of the development told the news site that plans for the founders’ new start-up is on hold. 

Sources familiar with the matter said that plans to spin off the language-learning app AirLearn as a separate business from the Unacademy group were also being considered, with Gaurav Munjal and Roman Saini expected to lead the new entity. However, no further details regarding the business model, valuation, or launch timeline have been disclosed, leaving the situation unresolved, the report stated.

The stalled deal comes after significant leadership changes at Unacademy. Earlier in the year, Munjal and Saini stepped back from operational roles. Subsequently, co-founder Sumit Jain was appointed chief executive of Unacademy’s core test-prep business.

People familiar with the matter told the news site that the company is expected to decide its next course of action in the coming days following the collapse of the upGrad talks.