The approval marks a significant step forward for the transaction, which first surfaced in May when both companies sought CCI clearance for the proposed all-share deal.
The Competition Commission of India (CCI) has approved upGrad's proposed acquisition of a stake in Sorting Hat Technologies, the parent company of Unacademy, along with the subsequent merger of Sorting Hat into upGrad Education, clearing a key regulatory milestone for one of India's largest edtech consolidation deals, according to media reports. In a brief order issued on Tuesday, the competition watchdog said a detailed order will follow.
The approval marks a significant step forward for the transaction, which first surfaced in May when both companies sought CCI clearance for the proposed all-share deal. Under the arrangement, Unacademy will become part of the Ronnie Screwvala-led upGrad group while continuing to operate under its existing leadership.
The deal underscores the ongoing consolidation across India's edtech landscape as companies recalibrate their business models in response to slower funding, evolving learner preferences and a stronger focus on sustainable growth.
Founded in 2015, Unacademy emerged as one of India's largest online learning platforms during the pandemic, driven by rising demand for digital education. The Bengaluru-based company expanded its presence in the competitive exam preparation segment through organic growth and acquisitions, including PrepLadder and Graphy.
However, like many players in the sector, Unacademy has faced headwinds in recent years as offline coaching regained momentum, venture funding tightened and investors prioritised profitability over aggressive expansion.
For upGrad, which has traditionally focused on higher education, university partnerships and professional upskilling, the acquisition broadens its footprint into the test preparation market while strengthening its portfolio with one of the country's most recognised education brands.
Source: BW Disrupt
