CCI clears upGrad’s acquisition of Unacademy

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.

The clearance removes an important regulatory hurdle for one of the biggest consolidation moves in India’s edtech sector, where companies have been reshaping their businesses after the pandemic-era funding boom gave way to slower growth and a stronger focus on profitability.

In its brief order issued on Tuesday, the competition watchdog said a detailed order will follow.

The approval marks the latest stage in a transaction that first came to light in May, when upGrad and Unacademy sought CCI approval for their proposed merger. The deal had been structured as an all-share transaction, with Unacademy expected to become part of the Ronnie Screwvala-led upGrad group while retaining operational continuity under its existing leadership.

The transaction reflects a sharp reset from Unacademy’s peak valuation during the pandemic funding cycle.

Founded in 2015, Unacademy grew rapidly as demand for online learning surged during the pandemic. The Bengaluru-based company built a large presence in test preparation for competitive examinations and other entrance and recruitment tests, while expanding through acquisitions such as PrepLadder and Graphy.

Like several peers, however, Unacademy later faced a tougher operating environment as offline coaching returned, funding became harder to secure and investors shifted their attention towards sustainable growth and lower cash burn.

upGrad, meanwhile, has focused primarily on higher education, university partnerships and professional upskilling, serving learners seeking career advancement. The proposed acquisition broadens its presence in the test preparation segment and adds another large education brand to its portfolio.

The deal has also coincided with leadership changes at both companies. In May, upGrad appointed Mukesh Mundra as its new chief financial officer. Mundra, previously associated with JioStar and earlier Viacom18, joined as the company prepared for the regulatory process surrounding the Unacademy transaction and its wider growth plans.

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 an internal communication, Jain will continue to remain associated with the company in an advisory capacity, while co-founder and chief executive officer Gaurav Munjal resumes direct oversight.

The transaction comes at a time when India’s edtech industry is entering a more mature phase. Companies are increasingly balancing online learning with physical coaching centres, using AI to personalise learning and improve student support, while placing greater emphasis on profitability than rapid expansion.

The sector has also seen continued consolidation as companies seek scale, wider course offerings and operational efficiencies in a more disciplined funding environment.