How UpGrad's bid to buy Unacademy could reshape Indian edtech

The Deal in Focus

Look, something big is about to redraw India's edtech map. UpGrad is in advanced talks to acquire Unacademy for around $300–$400 million (roughly ₹2,490–₹3,320 crore). And here’s the twist: Unacademy’s language-learning app, AirLearn, will spin off into its own entity, while its core test-prep business—with its expanding offline centers—will be bought by UpGrad. UpGrad won’t get equity in AirLearn. The clock is ticking—final terms could land in about three weeks.

Behind the numbers sit two clear moves. Unacademy has slashed cash burn from well over ₹1,000 crore to about ₹100 crore, while sitting on cash reserves around ₹1,200 crore. The deal also comes as Unacademy’s founders step back from day-to-day work, and Sumit Jain has taken the reins as CEO of the test-prep arm, pushing offline growth and profitability. Temasek’s quiet hand on both sides adds a steadying current to what’s become a turbulent sea of funding rounds, pivots, and price pressures.

AirLearn's Split: What It Signifies

So, why spin off AirLearn now? AirLearn becomes independent, which means language learning—often consumer-facing and brand-rich—can chase its own growth curve, separate from the high-stakes, test-prep machine. For UpGrad, the prize isn’t just a bigger test-prep network; it’s a larger learner funnel that can feed into degree programs, certifications, and professional courses. The price tag on AirLearn is not being counted in the deal; it’s effectively an unvalued but strategic piece.

This separation could unlock a more agile language product, quicker experimentation, and targeted go-to-market moves. For students, it could mean more tailored language offerings alongside exam prep—without the one-size-fits-all baggage that often comes with mega-coach networks.

What This Means for India’s Edtech Landscape

Imagine a more coherent edtech ecosystem where a few strong players coordinate offline centers, online courses, and language learning—without sacrificing trust or convenience for users. UpGrad’s acquisition could push a wave of consolidation that scales quality, not just revenue.

For the industry, it’s a clear signal: the era of feverish, unfettered expansion is giving way to selective consolidation backed by patient capital. The real test will be trust, outcomes, and how quickly platforms can turn a big user base into tangible, career-building results. This deal isn’t just a transaction; it’s a turning point—one that could redefine how Indians learn, authenticate skills, and move up the ladder in a fast-changing economy.