India’s competition regulator has cleared Ronnie Screwvala-led Upgrad’s proposed merger with Unacademy, removing a key procedural hurdle for one of the largest consolidation moves in the edtech sector after the pandemic-led online learning boom unravelled.
The Competition Commission of India’s approval comes two months after the higher education and upskilling company and the SoftBank and Peak XV Partners-backed test-prep startup sought antitrust clearance for the deal. Under the proposed transaction, UpGrad will acquire Unacademy in an all-stock deal that values the Bengaluru-based company at Rs 2,055 crore, or around $218 million, ET had reported on May 4 .
The deal values Unacademy at more than 90% below its peak valuation of $3.4 billion in 2021, when it had raised its largest round during the funding boom. ET had reported that Unacademy is expected to have Rs 900-950 crore in cash at the time of closing the deal, which is a key draw for Upgrad.
