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UpGrad is in talks to acquire Unacademy in a deal that could value the test-prep platform at ₹2,800-3,500 crore.
Note: if it goes through, the merger would be one of the biggest in India’s edtech space, an industry that skyrocketed during the pandemic as online learning took off.
What’s the deal: Unacademy’s language-learning app, AirLearn, will become a separate company. UpGrad will buy only Unacademy’s test-prep business, including its offline centres, and won’t own any part of AirLearn.
Reports suggest that Unacademy is currently an attractive buy as it holds about ₹1,200 crore in cash reserves. The company has sharply reduced its cash burn in three months from a peak of over ₹1,000 crore annually to around ₹100 crore now.
