Edtech unicorn PhysicsWallah is planning a major push into the UPSC exam preparation segment, exploring strategic acquisitions to fuel its broader growth and upcoming IPO.
Sources reveal that the company is evaluating seven to eight coaching institutes for potential acquisition, including prominent names like Chaitanya Academy, Drishti IAS, and Rau’s IAS Study Circle. This move underscores PhysicsWallah’s intent to strengthen its position in India’s thriving government exam prep sector.
A recent Entrackr report suggested that PhysicsWallah is in advanced talks to acquire Drishti IAS in a deal worth INR 2,500 crore. However, Vivek Tiwary, CEO of Drishti IAS, denied the claims, labeling them as speculation.
This acquisition strategy follows PhysicsWallah’s significant $210 million funding round last year, backed by Lightspeed Venture Partners, GSV Ventures, and WestBridge Capital, which valued the company at $2.8 billion. Co-founder Prateek Maheshwari previously mentioned that the funds would be directed toward expansion and strategic buyouts.
Started as a YouTube channel in 2016 by Alakh Pandey, PhysicsWallah has grown into a comprehensive edtech platform. Its growth accelerated post-2020 after Maheshwari joined and institutional investments began flowing in. Since then, the company has completed 11 acquisitions and now serves aspirants for exams like IIT-JEE, NEET, SSC, and UPSC through both online and offline channels.
In 2023, it entered a joint venture with Jodhpur-based Utkarsh Classes, known for state and central exam coaching, pledging INR 100 crore to bolster its UPSC preparation offerings.
India’s test prep industry is expected to reach $17.2 billion by 2029, and PhysicsWallah aims to become a top player. Despite seeing revenue grow 2.6X to INR 1,940.4 crore in FY24 from INR 744.3 crore in FY23, the company posted a widened net loss of INR 1,131.2 crore—mainly due to increased staffing costs and changes in the valuation of its compulsorily convertible preference shares (CCPS).
As it readies for its IPO, PhysicsWallah has confidentially filed its draft red herring prospectus (DRHP) and is looking to raise $500 million. It has engaged Axis Capital, Kotak Mahindra Capital, Goldman Sachs, and JP Morgan as lead bankers for the listing.
