Alakh Pandey-led edtech platform PhysicsWallah (PW) has made a significant move by acquiring a 50% stake in Kerala-based Xylem Learning through a deal worth INR 500 crore (approximately $61.04 million).
The investment, comprising both primary and secondary capital, aims to bolster PhysicsWallah’s presence in the southern market. Over the next three years, PW plans to invest INR 500 crore in Xylem, allowing both companies to expand into Tamil Nadu, Andhra Pradesh, and other southern regions.
Established in 2019 by Dr Ananthu S, Xylem Learning boasts a student base of over 3 million across South India through its 30 YouTube channels. The edtech platform also serves 100,000 paid students via various online courses and has 30,000 students attending its offline/hybrid centers across five districts in Kerala.
Xylem operates ten tuition centers and offers a school-integrated program across seven schools. It has also ventured into commerce education and Kerala PSC test preparation.
Alakh Pandey, founder and CEO of PW, expressed his excitement and pride about the partnership with Xylem Learning. He emphasized that this collaboration not only aligns with their shared vision of providing quality education but also brings them closer to their strategic goal of becoming the leading education platform in South India.
Pandey stated that the investment would enable the propagation of Xylem’s hybrid learning model to states beyond Kerala in South India. He highlighted the importance of team building, content development, technological innovation, and expansion in various categories and hybrid centers, all of which will be supported through this investment.
Additionally, PW aims to explore consolidation opportunities in South India as part of its expansion strategy.
The investment in Xylem follows PhysicsWallah’s recent investments in different business verticals. In May, PW announced a $10 million investment in tech innovation for the opening of 50 Vidyapeeth centers. They also invested INR 100 crore in their UPSC vertical and allocated INR 120 crore over the next two to three years to strengthen PW Skills.
PhysicsWallah had previously acquired iNeuron for over $31 million, focusing on skill development courses in AI, machine learning, and data science.
The announcement of the Xylem acquisition coincides with PhysicsWallah’s efforts to raise funds between $250 million and $300 million, targeting a valuation of $3.5 billion. The edtech company attained unicorn status after securing $100 million in funding in June last year.
