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Exclusive: PhysicsWallah–Drishti IAS acquisition deal called off

EntrackrEntrackr · 27d ago
Exclusive: PhysicsWallah–Drishti IAS acquisition deal called off
Medial

Exclusive: PhysicsWallah–Drishti IAS acquisition deal called off In April 2025, Entrackr exclusively reported that PhysicsWallah was evaluating acquisitions to strengthen its presence in the Union Public Service Commission (UPSC) test preparation segment. The highly anticipated acquisition of Drishti IAS by edtech unicorn PhysicsWallah has been called off, according to two sources. The deal was in advanced stages but did not materialize due to multiple reasons. The deal was estimated at Rs 2,500-Rs 3,000 crore. Drishti IAS, along with other institutes like Chaitanya Academy, Rau's IAS Study Circle, and Sarrthi IAS were among the assets being considered for potential acquisition. “Drishti IAS considered the proposal after being approached by PhysicsWallah, but given its strong revenue and profitability, the company has decided to continue operating independently and is not looking to raise external funding and acquisition," said one of the sources requesting anonymity. Drishti IAS, founded in 1999, has established itself as a leading player in civil services preparation, particularly for Hindi-medium students. The Delhi-based institute reported a revenue of Rs 405 crore and a profit after tax of Rs 90 crore in FY24. Sources added that Drishti is expected to close FY25 with a decent growth in revenue as well as profit. PhysicsWallah, known for its affordable online coaching, has been expanding its offerings beyond engineering and medical entrance exams into the competitive UPSC coaching space. The potential acquisition of Drishti IAS was seen as a strategic move to bolster its offline presence and diversify its portfolio ahead of its planned IPO. PhysicsWallah declined to comment on the story, while Drishti IAS did not respond to queries until the time of publication. Media reports suggest that PhysicsWallah filed draft papers via confidential route in March to raise Rs 4,600 crore through an initial public offering (IPO). If successful, it will become the first edtech unicorn to be listed on the stock exchange.

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Exclusive: PhysicsWallah in talks to acquire Drishti IAS for Rs 2,500 Cr

EntrackrEntrackr · 3m ago
Exclusive: PhysicsWallah in talks to acquire Drishti IAS for Rs 2,500 Cr
Medial

Edtech unicorn PhysicsWallah is in the advanced stages of acquiring offline coaching firm Drishti IAS Institute, according to three sources familiar with the matter. If finalized, this will mark the largest acquisition in the edtech space in the past couple of years. “PhysicsWallah is spending around Rs 2,500–3,000 crore to acquire the UPSC and state commissions preparatory platform,” said one of the sources, requesting anonymity. “The two companies have been in talks since January this year, and the deal is likely to be finalized soon.” The development comes at a time when PhysicsWallah is preparing for its initial public offering (IPO). The Noida-based company recently appointed three independent directors and is aiming to raise $500 million at a $5 billion valuation through the public listing. According to sources, the payment for the deal will be made in tranches and will be tied to future performance milestones. “Although we have been meeting several people from different organisations (IPO Bankers, PEs & Edtech founders) for our future plans, nothing has been finalized so far. The information you are talking about is just a rumour which shouldn't be taken seriously at all,” said Vivek Tiwari, CEO, Drishti IAS. Queries sent to PhysicsWallah did not elicit an immediate response. Drishti IAS, a 26-year-old educational platform that mainly provides offline coaching to help students prepare for the Civil Services Examination (CSE), reported Rs 405 crore in revenue with Rs 90 crore profit after tax (PAT) in FY24. Founded by Vikas Divyakirti, the Mukherjee Nagar Institute is the largest revenue contributor for Drishti IAS, accounting for 58% of the total coaching income, followed by Prayagraj, Jaipur, and Karol Bagh. On the other hand, nine-year-old PhysicsWallah has expanded into a full-fledged edtech platform offering live and recorded lectures, test series, study materials, and offline hybrid centers. The firm has raised over $300 million to date and was valued at around $2.8 billion during a $210 million Series B round in September last year. PhysicsWallah’s revenue from operations surged to Rs 1,940.4 crore in FY24, compared to Rs 744.3 crore in FY23. However, following the rising expenditure, its losses deepened over 13X to Rs 1,131 crore in FY24 against Rs 84 crore reported in FY23. The potential deal aligns with PhysicsWallah’s focus on offline coaching. Last year, the Lightspeed and WestBridge-backed company stated that it aims to achieve over Rs 1,000 crore in offline revenue by the end of FY25.

PhysicsWallah in talks to acquire Sarrthi IAS

EntrackrEntrackr · 2m ago
PhysicsWallah in talks to acquire Sarrthi IAS
Medial

Edtech unicorn PhysicsWallah is in final-stage talks to acquire Sarrthi IAS, an online platform that provides mentorship-focused courses for UPSC preparation. Sources indicate that the deal is likely in the range of Rs 120–130 crore, with Sarrthi having closed FY25 with Rs 35 crore in revenue and around Rs 20 crore in profits. The discussions follow PhysicsWallah's negotiations to acquire Drishti IAS for Rs 2,500–3,000 crore and align with the company's strategy to expand in the UPSC preparatory space. Sarrthi has been exploring consolidation with a larger player and has engaged in talks with other edtech firms. While sources suggest advanced discussions, Sarrthi's founder, Varun Jain, denies the ongoing talks. PhysicsWallah is reportedly preparing for an IPO, aiming to raise $500 million at a $5 billion valuation, and has seen substantial growth, reporting Rs 1,940.4 crore revenue in FY24.

Drishti IAS posts Rs 405 Cr revenue and Rs 90 Cr PAT in FY24

EntrackrEntrackr · 5m ago
Drishti IAS posts Rs 405 Cr revenue and Rs 90 Cr PAT in FY24
Medial

Drishti IAS posts Rs 405 Cr revenue and Rs 90 Cr PAT in FY24 Offline coaching firm Drishti IAS Institute crossed Rs 400 crore of revenue during the previous fiscal year ended in March 2024. The profits for the Vikas Divyakirti-led firm touched Rs 90 crore in the same period. Drishti IAS’s revenue from operations increased by 30.6% year-on-year to Rs 405 crore in FY24 from Rs 310 crore in FY23. The Delhi-based company's revenue rose from Rs 40 crore in FY21 to Rs 119 crore in FY22, and further to Rs 310 crore in FY23. The 26-year-old educational platform mainly provides offline coaching for Civil Services Examination (CSE). Income from coaching services accounted for 94.8% of the total operating revenue, which increased by 37.6% to Rs 384 crore in FY24 from Rs 279 crore in FY23. The remaining income is generated from the sale of study materials, including pen drives, books, test papers, and other resources. Drishti IAS operates seven institutes, including two in Delhi, three in Uttar Pradesh, and one each in Jaipur and Indore. Its Mukherjee Nagar Institute is the largest revenue contributor, accounting for 58% of the total coaching income. Employee benefits and faculty charges constituted 40% of its overall cost, increasing by 41% to Rs 117 crore in FY24 from Rs 83 crore in FY23. Drishti IAS's advertising spending also jumped 3.4X to Rs 51 crore in FY24. Drishti IAS's overall expenditure increased to Rs 289 crore in FY24 from Rs 197 crore in FY23. Higher spending on employee benefits and advertising resulted in a modest 3.4% increase in net profits, which rose to Rs 90 crore in FY24 from Rs 87 crore in FY23. The company's ROCE and EBITDA margin were recorded at 55.7% and 33.73%, respectively, while the expense-to-revenue ratio stood at Re 0.71. As of March 2024, the company's total current assets were valued at Rs 88 crore, with cash and bank balances of Rs 54 crore.

Exclusive: PhysicsWallah set to raise $150 Mn at $2.8 Bn valuation

EntrackrEntrackr · 12m ago
Exclusive: PhysicsWallah set to raise $150 Mn at $2.8 Bn valuation
Medial

While the edtech space has been going through a long spell of the so-called ‘funding winter’, PhysicsWallah (PW) appears close to raising a new large round. Fresh funding will be led by new investors whereas existing investors including Westbridge and GSV Ventures will also participate, three sources aware of the discussion told Entrackr. “PhysicsWallah is set to raise $150 million from new and existing backers,” said one of the sources requesting anonymity. “The terms of the deal have been sealed and the transaction is likely to be public soon.” This will be the second financing round for the Alakh Pandey-led firm in the past two years. PhysicWallah raised $100 million in a Series A round led by Westbridge and GSV Ventures in June 2022. “PhysicsWallah will be valued at around $2.8 billion in the new round,” said another source who also wished not to be named. This will be over a 2.5X jump in the company’s valuation as PhysicsWallah was valued at $1.1 billion in its Series A funding. Queries sent to PhysicsWallah and Westbridge didn’t elicit any immediate response. We will carry their comments in case they respond. According to the startup data intelligence platform TheKredible, WestBridge held a 2.4% stake in PhysicWallah while GSV owned 1.44% as of the Series A round. Its co-founders Alakh Pandey and Prayeek Maheshwari cumulatively command 86.54% of the company. PhysicsWallah started with online coaching for IIT/JEE but has now become a full-fledged education firm, offering offline coaching, schools, colleges, and upskilling programmes. According to sources, about 30% of its revenue comes from JEE and NEET coaching whereas offline coaching (via Vidyapeeth and Pathshala) contributes 35% of the collection. While the company is yet to disclose FY24 numbers, PhysicsWallah’s revenue surged 3.3X to Rs 779 crore in FY23. At the same time, the firm’s profit declined more than 90% to Rs 8.87 crore in FY23. In November last year, the company laid off 120-150 employees as a cost-cutting measure. Entrckr was the first to report the development. As per data compiled by TheKredible, edtech startups raised only $138 million across 21 deals during the first half of 2024. This is a sharp fall from $456 million in 2023, $2.3 billion in 2022, and $5.8 billion in 2021. The funding news is the strongest testament yet to the investor conviction in PhysicsWallah’s long-term strengths. This incredible loyalty and credibility with the student community other edtechs have simply not been able to earn for love or money. The valuation also indicates a relatively long time investors are willing to wait it out for the firm to deliver on its potential and declared ambitions. A funding round in this environment will not just buy PhysicsWallah time, but also provide the gunpowder to scale up at a much lower cost thanks to the emasculated state of the competition.

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