The Competition Commission of India’s (CCI) 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 funding 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, which was a key draw for Upgrad as it looks to expand into online test preparation.
The CCI filing had said the combination would enable Upgrad to enter online test prep, a segment where it did not have a presence, and broaden the range of learners served by the company. It also gives Unacademy’s shareholders an opportunity to hold shares in a larger consolidated entity at a time when standalone edtech valuations have corrected sharply.