India, Nov. 7 -- UpGrad, promoted by film producer-turned-entrepreneur Ronnie Screwvala, is said to be in talks to acquire rival Unacademy at a fraction of its last-known valuation. The deal would mark be one of the biggest consolidation moves in India's edtech space.

A term-sheet for the UpGrad-Unacademy deal could be signed in three weeks, Moneycontrol reported citing people familiar with the matter. As part of the deal, Unacademy's language-learning app AirLearn would be spun off into a separate entity, while the core test-prep business - including offline centres - will be acquired by UpGrad.

The transaction would peg Unacademy's valuation at $300-400 million (about Rs.2,800-3,500 crore), as against its last-known valuation of $3.44...