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PhysicsWallah in talks to acquire Sarrthi IAS

EntrackrEntrackr ยท 9m 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 120โ€“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 2,500โ€“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.

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Exclusive: PhysicsWallah acquires minority stake in Sarrthi IAS

EntrackrEntrackr ยท 4m ago
Exclusive: PhysicsWallah acquires minority stake in Sarrthi IAS
Medial

Exclusive: PhysicsWallah acquires minority stake in Sarrthi IAS Edtech Unicorn PhysicsWallah has acquired a minority stake in UPSC coaching institute Sarrthi IAS, according to three sources aware of the development. โ€œPW has picked up 40% in the company at a valuation of about Rs 250 crore. Sarrthi will continue to operate independently while leveraging on PhysicsWallahโ€™s tech infra,โ€ said one of the sources, requesting anonymity. Founded by Varun Jain and Dr. Shivin Chaudhry, Sarrthi IAS provides mentorship-focused courses for UPSC preparation. The platform offers GS Foundation, Mains modules, Prelims revision, and interview guidance. The deal marks a consolidation move in the UPSC prep market, where PhysicsWallah has been scaling through its vertical PWOnlyIAS. โ€œAfter this deal, the combined UPSC vertical including PWOnlyIAS and Sarrthi IAS is expected to cross Rs 350 crore in revenue in FY26,โ€ according to the source quoted above. For PhysicsWallah, the investment strengthens its positioning in the civil services test-prep segment UPSC and all state public service commission exams, and adds heft to its offline presence. PW had earlier explored larger acquisitions, including Drishti IAS, but talks did not materialise. Entrackr has reached out to PhysicsWallah and Sarrthi IAS for comments on the story. We will update the story in case they respond. The stake purchase comes as PhysicsWallah gears up for its IPO. The company received SEBIโ€™s nod to file its Draft Red Herring Prospectus (DRHP) and is planning to raise around Rs 4,500 crore through the IPO. On the revenue front, the Alakh Pandey-led firm reported a 55% year-on-year jump to around Rs 3,000 crore in FY25, while losses narrowed by nearly 80% during the same period. Entrackr had exclusively reported these numbers last month.

Exclusive: PhysicsWallahโ€“Drishti IAS acquisition deal called off

EntrackrEntrackr ยท 8m ago
Exclusive: PhysicsWallahโ€“Drishti IAS acquisition deal called off
Medial

Exclusive: PhysicsWallahโ€“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. โ€œDrishti 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.

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

EntrackrEntrackr ยท 10m 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. โ€œPhysicsWallah is spending around Rs 2,500โ€“3,000 crore to acquire the UPSC and state commissions preparatory platform,โ€ said one of the sources, requesting anonymity. โ€œThe two companies have been in talks since January this year, and the deal is likely to be finalized soon.โ€ 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. โ€œAlthough 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,โ€ 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. PhysicsWallahโ€™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 PhysicsWallahโ€™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.

Drishti IAS posts Rs 364 Cr revenue and Rs 61 Cr PAT in FY25

EntrackrEntrackr ยท 5d ago
Drishti IAS posts Rs 364 Cr revenue and Rs 61 Cr PAT in FY25
Medial

Fintrackr All Stories Drishti IAS posts Rs 364 Cr revenue and Rs 61 Cr PAT in FY25 Offline coaching firm Drishti IAS has reported operating revenue of Rs 364 crore in FY25, a 10% decline from Rs 405 crore in the previous year, according to its audited financial results. The companyโ€™s EBITDA declined to Rs 77 crore from Rs 127 crore, while profit after tax fell 32% to Rs 61 crore from Rs 90 crore year on year. The company attributed the revenue dip to Ind-AS based accounting adjustments and a broader normalisation in the offline coaching sector following the post Covid surge in enrolments. Drishti IAS also cited the stabilisation of classroom admissions across major coaching hubs as student numbers return to pre-Covid levels. Importantly, the relocation of its primary Mukherjee Nagar centre to a compliant facility in Noida during FY25 resulted in a revenue loss of over Rs 30 crore. Founded in 1999 by Vikas Divyakirti, Drishti IAS focuses on UPSC and PCS exam preparation and operates eight centres across Delhi, Noida, Prayagraj, Lucknow, Jaipur, Indore, Ranchi, and Patna. Drishti IAS is expanding across offline and online segments. It opened new centres in Ranchi and Patna in FY26, launched lower-priced studio-based online programmes, and entered Judiciary, Teaching Exams, and SSC categories. The firm also plans to expand into Banking, Defence, and School education, said CEO Vivek Tiwari through a press statement. The company has appointed Vipan Joshi as Chief Financial Officer. Joshi previously served as CFO at Aakash Institute. Originally an offline only coaching institute, Drishti IAS launched its online arm in FY21. In FY25, nearly one third of its revenue came from online operations, with the remainder from offline centres. It is worth noting that PhysicsWallah was in talks to acquire Drishti IAS, but the discussions were eventually called off, with both companies choosing to pursue independent growth strategies.

PhysicsWallah spent Rs 1,426 Cr on salaries in FY25; Offline ARPU stood at Rs 40,405

EntrackrEntrackr ยท 4m ago
PhysicsWallah spent Rs 1,426 Cr on salaries in FY25; Offline ARPU stood at Rs 40,405
Medial

Fintrackr All Stories PhysicsWallah spent Rs 1,426 Cr on salaries in FY25; Offline ARPU stood at Rs 40,405 PhysicsWallah has filed draft papers with SEBI to raise Rs 3,820 crore through IPO. Its financial statement shows the company significantly narrowing its losses on the back of strong revenue growth across online, offline, and hybrid channels. PWโ€™s operating revenue grew nearly 49% to Rs 2,887 crore in FY25 from Rs 1,941 crore in FY24. Income from coaching services remained the largest contributor at Rs 2,498.5 crore, with the online segment rising 45.5% to Rs 1,404 crore in FY25 from Rs 965 crore in FY24, while offline coaching grew 45.7% to Rs 1,352 crore from Rs 928 crore. The Average Revenue Per User (ARPU) in its offline channel has steadily improved from Rs 34,467 in FY23 to Rs 40,405 in FY25. The offline channel now contributes nearly 47% of the top line. Revenue from hostel fees and transportation added Rs 88 crore, and the sale of products jumped 74% to Rs 259 crore in FY25. India remained the core market contributing Rs 2,851 crore or 98.75% of the total operating revenue, while Dubai and the USA collectively accounted for Rs 36 crore or 1.25%. PhysicsWallah employed 5,096 faculty members in FY25, a 40% increase from 3,654 in FY24. Of these, 4,207 were permanent teachers while 889 were hired on a contractual basis. To support the larger base of faculty and other staff, the companyโ€™s spend on salaries grew nearly 28% to Rs 1,426 crore in FY25, accounting for 44% of its overall expenditure. Marketing expenses stood at Rs 448 crore for FY25. The company also spent Rs 123 crore on materials and Rs 366 crore on depreciation. Overall, PhysicsWallah kept its spending broadly flat at Rs 3,265 crore in FY25 as against Rs 3,279 crore in FY24. With controlled expenses and growing revenue, PW managed to bring down its burn significantly by 78.5% to Rs 243 crore in FY25 from Rs 1,131 crore in FY24. The company reported a positive EBITDA of Rs 192.5 crore in FY25 with an EBITDA margin of 6.33%. The companyโ€™s ROCE stood at -6.37%. On a unit level, the firm spent Rs 1.13 to earn a rupee in FY25, a sharp improvement from Rs 1.69 in FY24. The company reported current assets worth Rs 2,237 crore as of March 2025, including Rs 175 crore in cash and bank balances. The company disclosed a political contribution of Rs 37 lakh during FY25. As per DRHP, co-founders Alakh Pandey and Prateek Boob hold the largest stakes in the company at 40.35% each, followed by WestBridge Capital with 7.8%, while Hornbill Capital, GSV Ventures, and Lightspeed hold 4.42%, 2.85%, and 1.79%, respectively. PhysicsWallah acquired a 40% stake in UPSC coaching institute Sarrthi IAS.

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