Indian edtech platform upGrad has signed a term sheet to acquire rival Unacademy in a 100% share-swap deal, as reported by TechCrunch, marking a significant consolidation in India's online education sector.

Unacademy co-founder and CEO Gaurav Munjal confirmed the agreement on 15 March, noting that valuation terms would not be disclosed until the transaction closes and relevant filings are made public.

The announcement follows Munjal's earlier admission that Unacademy's valuation had fallen below $500m (€431.65m), down approximately 85% from its 2021 high of $3.5bn (€3.02bn).

Munjal will continue leading Unacademy post-acquisition. upGrad co-founder Ronnie Screwvala said the combined entity would strengthen upGrad's integrated model spanning K-12 education, upskilling, and lifelong learning. The companies have also agreed to an undisclosed break fee should the transaction not close.

"If this closes, upGrad's integrated model with an expanded focus from K12 to forever learning will be on a strong trajectory," Screwvala said.

Munjal said the merger reflects a shared belief in scale. "If and when we do come together, we share upGrad's belief that 'The Whole is bigger than the Sum of Parts' and altogether we will impact students, learners and working professionals and build great products from K12 to Forever Learning," he said.

Founded as a YouTube channel in 2010 and formally launched as a platform in 2015, Unacademy has raised approximately $854.3m (€737.52m) across 13 funding rounds from backers including SoftBank, Tiger Global, and General Atlantic. The company currently holds more than $100m (€86.33m) in cash reserves following a period of restructuring focused on its core digital products.

Munjal has also been developing Airlearn, an AI-first language-learning application gaining traction in the United States, United Kingdom, Germany, and Canada, signalling ambitions beyond its core Indian market.

Access the full details of the acquisition in the original report.