India’s edtech giant PhysicsWallah (PW) is in the final stages of acquiring Drishti IAS, one of the country’s most renowned UPSC coaching institutes, in a deal valued between ₹2,500 and ₹3,000 crore, according to sources cited by Entrackr. If completed, this will mark the largest acquisition in India’s edtech sector in recent years, significantly strengthening PW’s presence in offline coaching.
Scaling Offline Operations Amid IPO Plans
The acquisition aligns with PhysicsWallah’s ongoing expansion into offline education, a move that positions the company as a dominant player across multiple competitive exam categories. With Drishti IAS under its umbrella, PW will establish a significant foothold in the premium UPSC coaching segment, leveraging Drishti’s established presence and brand credibility.
The timing of the deal is crucial, as PhysicsWallah is actively preparing for an initial public offering (IPO). The Noida-based unicorn recently appointed three independent directors and aims to raise $500 million at a $5 billion valuation through its public listing.
Strategic Expansion into UPSC Coaching
Drishti IAS, founded by Vikas Divyakirti, has been a leader in UPSC Civil Services Examination (CSE) coaching for 26 years. The institute reported a revenue of ₹405 crore and a profit of ₹90 crore in FY24, with its flagship Mukherjee Nagar centre in Delhi accounting for 58% of the total revenue, followed by its centers in Prayagraj, Jaipur, and Karol Bagh.
With this acquisition, PhysicsWallah will not only diversify its offerings beyond JEE and NEET coaching but will also solidify its presence in the lucrative UPSC coaching market.
However, Drishti IAS CEO Vivek Tiwari has denied the media reports, stating, “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.” Queries sent to PhysicsWallah remain unanswered.
Financial Growth and Challenges
Founded by Alakh Pandey, PhysicsWallah has evolved from a YouTube-based educational platform into a full-fledged edtech powerhouse, offering live and recorded lectures, test series, study materials, and offline hybrid centers.
The company’s revenue surged to ₹1,940 crore in FY24, a sharp increase from ₹744 crore in FY23. However, its aggressive expansion has also led to rising operational costs, with losses widening over 13 times to ₹1,131 crore in FY24, compared to ₹84 crore in FY23.
Despite these financial challenges, PW remains committed to scaling its offline presence. Last year, the company announced its ambition to generate over ₹1,000 crore in offline revenue by the end of FY25, a goal that the Drishti IAS acquisition would greatly accelerate.
Looking Ahead: A Game-Changer for India’s Edtech Industry
PhysicsWallah has raised over $300 million to date, with its most recent funding round—a $210 million Series B in September last year—valuing the company at approximately $2.8 billion. The potential acquisition of Drishti IAS could redefine its market position, allowing it to seamlessly integrate the strengths of both online and offline coaching models.
As India’s education sector continues to evolve, this deal could set a new benchmark for consolidation within the industry. With PW eyeing a dominant presence in competitive exam coaching and gearing up for an IPO, the acquisition of Drishti IAS could be a defining moment in its journey toward becoming India’s leading edtech powerhouse.
