Unacademy, once India’s hottest education startup, is being bought by rival upGrad in a deal that shows how badly the online learning boom has crashed.
The company was worth $3.5 billion just a few years ago during the pandemic when everyone was learning from home. Now it’s selling for less than $500 million – that’s like a $100 house suddenly being worth $14.
The Education Gold Rush is Over
During COVID, investors threw money at education apps thinking online learning would take over the world. Unacademy raised hundreds of millions and hired thousands of teachers to create courses for everything from college prep to job training.
But when schools reopened, students went back to classrooms. Parents got tired of kids staring at screens all day. The magic wore off.
Unacademy isn’t alone. Across India, education startups that were once worth billions are now laying off workers and scrambling to stay alive. upGrad, the company buying Unacademy, focuses more on professional training for adults – which seems to be working better than trying to replace traditional schools.
What’s Next
This deal shows that the edtech bubble has officially popped. The survivors are the companies that found sustainable ways to make money, not just ride the hype wave. Expect more education startups to either get bought cheap or shut down completely as reality sets in.