Startup Funding
upGrad has dropped plans to acquire Unacademy after months of discussions, as the two sides failed to agree on a final valuation, according to media reports. The talks had marked the first formal confirmation of potential merger and acquisition discussions around Unacademy. Last month, co-founder Gaurav Munjal said the company was open to an M&A transaction if it resulted in a “stronger entity”. He also acknowledged that Unacademy’s valuation may have fallen to below $500 million, sharply lower than its peak valuation of $3.5 billion in 2021. As part of the discussions with upGrad, Unacademy’s investors were expected to receive a minority stake in the combined entity. upGrad, which sees itself at a valuation of around $2 billion, was primarily interested in Unacademy’s core test-preparation business, with other verticals likely to be excluded from the deal structure. The collapse of the talks comes against the backdrop of a prolonged slowdown in India’s edtech sector after the pande...