UpGrad Unacademy deal canceled; uncertainty over Gaurav Munjal’s new start-up: report

Acquisition discussions between Unacademy and upGrad, which had been going on for several months, reportedly ended after the two parties failed to reach a consensus on the valuation and structure of the transaction. This development has now caused uncertainty about the Unacademy founders’ plans for new businesses and potential funding.

According to an article in Moneycontrol, discussions focused on valuing Unacademy between $300 million and $400 million, with the two companies exploring possible synergies.

Unacademy co-founders Gaurav Munjal and Roman Saini are reportedly in talks to raise about $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 on the outcome of acquisition negotiations, the report said.

People with knowledge of the development told the news site that the founders’ plans to create a new startup were on hold.

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

The stalled deal comes after major leadership changes at Unacademy. Earlier this year, Munjal and Saini stepped down from operational roles. Subsequently, co-founder Sumit Jain was named general manager 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, after negotiations with UpGrad failed.