Edtech

PhysicsWallah in Advanced Talks to Acquire Drishti IAS for Rs 2,500 Crore

• ByStartupStory     |    April 1, 2025

In a significant development in the Indian edtech and test-prep sector, PhysicsWallah, the unicorn known for its affordable online coaching, is in advanced discussions to acquire leading civil services coaching institute Drishti IAS. The deal is reportedly valued at around Rs 2,500 crore, marking a major step in PhysicsWallah’s expansion beyond engineering and medical entrance exams into the UPSC coaching space.

The potential acquisition comes at a strategic time for PhysicsWallah as it prepares for its Initial Public Offering (IPO). By bringing Drishti IAS into its portfolio, the company aims to strengthen its presence in the highly competitive and lucrative civil services preparation segment.

Drishti IAS, a well-established name in the UPSC coaching sector, reported a revenue of Rs 405 crore and a profit of Rs 90 crore in FY24, making it an attractive addition to PhysicsWallah’s growing operations. The move is expected to enhance PhysicsWallah’s offline presence while adding a high-margin business vertical to its expanding portfolio.

Strengthening Market Presence Amidst Edtech Consolidation

Industry experts believe that the acquisition could significantly bolster PhysicsWallah’s position in the test-prep market, which has been witnessing increasing consolidation as major edtech players seek to diversify their offerings across multiple competitive exams.

“PhysicsWallah’s traditional focus has been on providing affordable education to JEE and NEET aspirants. However, acquiring Drishti IAS would give the company a strong foothold in the UPSC preparation market, one of the most sought-after coaching segments in India,” said an industry analyst.

The acquisition aligns with PhysicsWallah’s broader strategy to expand into new education verticals ahead of its IPO. The move is expected to not only diversify the company’s revenue streams but also enhance investor confidence by showcasing sustained growth beyond its core engineering and medical coaching businesses.

The Evolution of Edtech and the Offline Coaching Resurgence

The deal also highlights the shifting landscape of the edtech sector, with many companies recognizing the importance of offline coaching post-pandemic. While digital learning remains a crucial component, the demand for in-person coaching has seen renewed interest, prompting edtech firms to integrate offline components into their business models.

“This acquisition could set the stage for more mergers and acquisitions in the competitive test-prep space,” said another industry expert. “It signals a trend where online and offline coaching models are increasingly merging to create a holistic learning ecosystem.”

While neither PhysicsWallah nor Drishti IAS has officially confirmed the final terms of the transaction, sources indicate that the deal is in its final stages. If completed, it would mark one of the biggest acquisitions in India’s test-prep market, further solidifying PhysicsWallah’s leadership in the sector.

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