Edtech company PhysicsWallah is reportedly in the final stages of acquiring Drishti IAS, a leading offline coaching institute for UPSC and state commission exams, according to a media report. If finalized, this would mark one of the largest acquisitions in the edtech sector in recent years.
Acquisition Deal Details
As per a report by Entrackr, PhysicsWallah is expected to spend between Rs 2,500 crore and Rs 3,000 crore on the acquisition. Discussions have been ongoing since January, with an official agreement anticipated soon. The deal is expected to be structured in multiple payment segments.
Strategic Move Ahead of IPO
The potential acquisition comes at a time when PhysicsWallah is preparing for its Initial Public Offering (IPO). The Noida-based firm recently appointed three independent directors and is targeting a $5 billion valuation through a $500 million public listing.
Drishti IAS CEO Denies Speculation
Despite reports of the acquisition, Vivek Tiwari, CEO of Drishti IAS, has denied the claims. He stated, “Although we have been meeting several people from different organizations (IPO bankers, PEs, and edtech founders) for our future plans, nothing has been finalized so far. The information you are talking about is just a rumor that shouldn’t be taken seriously.”
Drishti IAS: A Leading UPSC Coaching Institute
Founded 26 years ago by Vikas Divyakirti, Drishti IAS is a well-known coaching institute specializing in Civil Services Examination (CSE) preparation. In FY24, the company reported Rs 405 crore in revenue and Rs 90 crore in profit.
The Mukherjee Nagar center in Delhi contributed 58% of the company’s total revenue, with additional centers in Prayagraj, Jaipur, and Karol Bagh.
PhysicsWallah’s Expansion and Financial Performance
Launched nine years ago, PhysicsWallah has grown into a major edtech platform offering live and recorded lectures, test series, study materials, and hybrid coaching centers.
In FY24, PhysicsWallah’s revenue from operations surged 160% to Rs 1,940.4 crore, up from Rs 744.3 crore in FY23. However, its losses expanded over 13 times, reaching Rs 1,131 crore in FY24, compared to Rs 84 crore in FY23.
Backed by Lightspeed and WestBridge, the company has raised over $300 million and was last valued at $2.8 billion after securing $210 million in a Series B round in September 2023.
Potential Impact of the Acquisition
If completed, the acquisition of Drishti IAS would significantly strengthen PhysicsWallah’s position in both the online and offline coaching segments, further solidifying its dominance in India’s competitive edtech market.
