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The Competition Commission of India (CCI) has cleared Ronnie Screwvala-led upGrad’s acquisition of edtech unicorn Unacademy, the regulator confirmed in a release issued Tuesday. The approval permits upGrad to acquire shareholding in Sorting Hat Technologies Private Limited and merge it into upGrad Education Private Limited, bringing together two of India’s most recognized names in online education.
Deal Timeline and Valuation
The regulatory nod arrives nearly two months after upGrad filed its merger application with the CCI. The transaction traces back to March 2026, when upGrad signed a term sheet to acquire Unacademy in a deal valued at approximately Rs 2,055 crore.
upGrad’s Financial Turnaround
The approval comes at a pivotal moment for upGrad. In May, the company was valued at $1.73 billion following a Rs 361 crore funding round led by Screwvala, with participation from Temasek, IFC, and 360 ONE Opportunities Fund. upGrad also reported a provisional profit after tax of Rs 38.8 crore for the 11 months ended February 2026—a sharp reversal from a Rs 273.7 crore loss in FY25. EBITDA turned positive at Rs 56.9 crore, while revenue from operations reached Rs 1,531.7 crore.
Reading the Bigger Picture
This merger is expected to create India’s first combination of two edtech unicorns. upGrad’s strength lies in higher education and professional upskilling, while Unacademy has built its identity around test preparation. Together, they signal a broader industry shift: edtech firms consolidating to achieve scale and profitability after years of pandemic era funding excess and subsequent correction.
The Road Ahead for the Combined Entity
With CCI approval secured, the companies are expected to move toward finalizing the merger. Stakeholders including students, educators, and investors will be watching how the combined entity integrates its offerings and whether it can sustain upGrad’s recent profitability trend.
