New Delhi, Nov. 7 -- Edtech major UpGrad is in talks to acquire Unacademy in a deal that could value the test-prep platform at $300-400 million ( Rs.2,800-3,500 crore), Moneycontrol reported citing people familiar with the matter.

"The two companies could sign a term sheet in three weeks," one person said, requesting anonymity as the discussions are private.

The potential valuation represents a sharp drop from Unacademy's $3.44 billion valuation in 2021, signaling how far India's pandemic-era edtech boom has cooled.

As part of the proposed transaction, Unacademy's language-learning app AirLearn will be spun out into a separate company.

"The core test-prep business - including its growing offline learning centres - will be sold to UpGr...