CCI Clears upGrad’s Acquisition of Unacademy

New Delhi, India Jul 7, 2026 ALN: The Competition Commission of India (CCI) has approved upGrad’s acquisition of certain shareholding in Unacademy parent Sorting Hat Technologies Private Limited and the subsequent merger of Sorting Hat into upGrad Education. This decision marks a significant development in the rapidly evolving landscape of India’s edtech sector, which has undergone substantial changes in recent years, particularly following the COVID-19 pandemic.

The approval from the CCI removes a critical regulatory hurdle for one of the most substantial consolidation moves in the Indian edtech industry. This sector, which experienced a meteoric rise during the pandemic due to increased demand for online education, is now facing a transition as companies reassess their business models. The initial funding boom that characterized the early days of the pandemic has given way to a more cautious approach, with a stronger emphasis on profitability and sustainable growth.

In its brief order issued on Tuesday, the competition watchdog indicated that a detailed order would follow, providing further insights into the rationale behind its decision. The approval signifies a pivotal moment for both upGrad and Unacademy, as it allows the companies to move forward with their plans to merge operations and resources.

This transaction first came to light in May when upGrad and Unacademy sought CCI approval for their proposed merger. The deal has been structured as an all-share transaction, which implies that Unacademy is expected to integrate into the Ronnie Screwvala-led upGrad group while maintaining operational continuity under its existing leadership. This structure is indicative of the strategic approach both companies are taking to ensure a smooth transition and to leverage each other’s strengths in the competitive edtech landscape.

The acquisition reflects a significant shift from Unacademy’s peak valuation during the pandemic funding cycle. Founded in 2015, Unacademy experienced rapid growth as the demand for online learning surged. The Bengaluru-based company established a strong foothold in test preparation for competitive examinations and various entrance and recruitment tests. Unacademy expanded its reach through strategic acquisitions, including notable companies like PrepLadder and Graphy, enhancing its portfolio and service offerings.

However, similar to many of its peers in the edtech sector, Unacademy faced a challenging operating environment as offline coaching resumed post-pandemic. The return to physical classrooms and coaching centers has resulted in increased competition for online education providers. Additionally, the funding landscape has become more stringent, with investors now prioritizing sustainable growth and lower cash burn rates over aggressive expansion strategies.

In contrast, upGrad has focused primarily on higher education, university partnerships, and professional upskilling. The company serves a demographic of learners who are seeking career advancement through skill enhancement and educational opportunities. The proposed acquisition of Unacademy not only broadens upGrad’s presence in the test preparation segment but also adds another significant education brand to its portfolio, thereby enhancing its competitive positioning in the market.

The timing of this transaction is particularly noteworthy, as it coincides with leadership changes at both companies. In May, upGrad appointed Mukesh Mundra as its new chief financial officer. Mundra, who previously held positions at JioStar and Viacom18, joined upGrad as the company geared up for the regulatory process surrounding the Unacademy transaction and its broader growth ambitions. His experience is expected to play a crucial role in navigating the complexities of this merger and in steering the company towards its strategic objectives.

At Unacademy, co-founder Sumit Jain, who has been leading the company’s test preparation business as chief executive officer, stepped down from his full-time operating role in May. According to internal communications, Jain will continue to remain associated with the company in an advisory capacity, allowing him to contribute his insights and expertise without being involved in day-to-day operations. Meanwhile, co-founder and chief executive officer Gaurav Munjal has resumed direct oversight of the company, indicating a potential shift in leadership dynamics as the company prepares to integrate with upGrad.

The transaction occurs at a pivotal moment when India’s edtech industry is entering a more mature phase. Companies are increasingly balancing the benefits of online learning with the advantages of physical coaching centers. The integration of artificial intelligence (AI) into educational platforms is also becoming more prevalent, with firms utilizing AI to personalize learning experiences and enhance student support services. This technological advancement is crucial as it allows companies to cater to the diverse learning needs of students while improving overall educational outcomes.

Furthermore, the edtech sector is witnessing continued consolidation as companies strive for scale, broader course offerings, and operational efficiencies in a more disciplined funding environment. This trend is indicative of a broader movement within the industry where companies are seeking to optimize their operations and create synergies through mergers and acquisitions.

The implications of this merger extend beyond the immediate operational benefits for upGrad and Unacademy. It signals a shift in the competitive landscape of the edtech industry, as larger players seek to dominate market segments and offer comprehensive solutions to learners. As the industry matures, smaller players may face challenges in sustaining their operations, leading to further consolidation in the sector.

The approval of upGrad’s acquisition of Unacademy also highlights the regulatory environment in India and the role of the CCI in overseeing significant mergers and acquisitions. The commission’s scrutiny of such transactions is essential in ensuring that competition is maintained in the market, preventing monopolistic practices and fostering innovation within the industry.

As the edtech sector continues to evolve, stakeholders will be closely monitoring how this merger impacts the competitive dynamics of the market, the strategic direction of both companies, and the overall landscape of online education in India. The focus on profitability and sustainable growth is likely to shape future business strategies, with companies prioritizing long-term viability over short-term gains.