New Delhi, Jan. 9 -- India's edtech consolidation narrative has hit a pause button. UpGrad has called off its proposed acquisition of Unacademy after months of discussions, citing valuation concerns and unresolved business challenges at the SoftBank- and Temasek-backed company, according to people familiar with the matter.

The development was first reported by PTI, which said the talks collapsed after upGrad assessed Unacademy's business and found the valuation expectations misaligned with operational realities.

Unacademy, once valued at $3.4 billion during the 2021 funding boom, was being discussed at a valuation of around $290 million, a correction of more than 90 per cent from its peak.

According to sources cited by PTI, Unacademy's...