New Delhi, Jan. 8 -- upGrad has dropped plans to acquire Unacademy after the two sides failed to agree on valuation, two people aware of the development said.

The talks, one of the biggest consolidation moves in India's edtech sector, have now formally collapsed.

"Yes, we are not proceeding due to valuation differences," Ronnie Screwvala, co-founder of Temasek-backed upGrad, said in response to Mint's query. "We were unable to arrive at a mutually agreeable valuation."

Moneycontrol was the first to report the development on Thursday.

In November last year, upGrad proposed a share-swap deal that was expected to value Unacademy at $300-400 million, a steep drop from its $3.4 billion valuation during the 2021 funding boom. Backed by Soft...