Edtech unicorn PhysicsWallah is reportedly in the final stages of acquiring Drishti IAS Institute, a prominent offline coaching platform for UPSC and state commission exams. If finalized, this will be the largest acquisition in the edtech sector in recent years, with PhysicsWallah set to spend between Rs 2,500 and 3,000 crore on the deal.
The two companies have been in discussions since January this year, and the acquisition is expected to close soon. This move comes at a critical time as PhysicsWallah is also preparing for its Initial Public Offering (IPO), aiming to raise $500 million at a $5 billion valuation. The company has recently appointed three independent directors to strengthen its governance ahead of the public listing.
Sources reveal that the payment for the Drishti IAS deal will be structured in tranches, with some payments contingent on the platform’s future performance milestones.
Vivek Tiwari, CEO of Drishti IAS, downplayed the rumors, stating that while discussions are ongoing with various organizations, nothing has been finalized. PhysicsWallah, on the other hand, has not yet responded to requests for comment.
Drishti IAS, founded 26 years ago, is known for providing offline coaching for the Civil Services Examination (CSE) and reported Rs 405 crore in revenue and Rs 90 crore in profit after tax for FY24. The Mukherjee Nagar Institute is the largest contributor to the company’s revenue, accounting for 58% of its total coaching income.
PhysicsWallah, a 9-year-old company, has grown into a comprehensive edtech platform offering live and recorded lectures, test series, study materials, and offline hybrid centers. The company has raised over $300 million in funding and was valued at $2.8 billion during its $210 million Series B round in September last year.
The company’s revenue from operations surged significantly to Rs 1,940.4 crore in FY24, compared to Rs 744.3 crore in FY23. However, due to increased expenditures, PhysicsWallah’s losses widened over 13 times, reaching Rs 1,131 crore in FY24, up from Rs 84 crore in FY23.
This acquisition aligns with PhysicsWallah’s strategy to expand its offline presence. Last year, the company set a goal of achieving over Rs 1,000 crore in offline revenue by the end of FY25, indicating its commitment to growing in both the online and offline education sectors.
