Edtech giant PhysicsWallah is reportedly gearing up to expand its presence in the Union Public Service Commission (UPSC) test prep domain through strategic acquisitions, as part of its broader growth and IPO ambitions.
According to sources, the unicorn is currently assessing seven to eight coaching institutes for potential buyouts, including notable names such as Chaitanya Academy, Drishti IAS, and Rau’s IAS Study Circle. These evaluations mark the startup’s deepening focus on capturing a larger share of India’s booming government exam preparation market.
Recently, a report by Entrackr claimed that PhysicsWallah was in advanced talks to acquire Drishti IAS for around INR 2,500 Cr. However, Drishti IAS CEO Vivek Tiwary dismissed the news, calling it mere speculation.
This potential acquisition spree follows a massive funding round last year, where PhysicsWallah raised $210 million (approx. INR 1,818 Cr) from marquee investors like Lightspeed Venture Partners, GSV Ventures, and WestBridge Capital, pushing its valuation to $2.8 billion. Co-founder Prateek Maheshwari had stated then that the funds would be used for expansion and key strategic acquisitions.
Since its humble beginnings as a YouTube channel in 2016 by Alakh Pandey, PhysicsWallah has evolved into a multi-category edtech platform. It accelerated its growth trajectory in 2020 following its first institutional fundraise and co-founder Maheshwari’s entry. The company has since completed 11 acquisitions and now caters to aspirants preparing for IIT-JEE, NEET, SSC, and UPSC exams—both online and through physical centers.
In 2023, PhysicsWallah also entered a joint venture with Utkarsh Classes, a Jodhpur-based coaching institute specialising in central and state government exams. The edtech firm had announced plans to invest INR 100 Cr to strengthen its UPSC vertical further.
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India’s test prep market is projected to hit $17.2 billion by 2029, and PhysicsWallah is positioning itself to become a leading force in this space. Despite a significant surge in operational revenue—jumping 2.6X to INR 1,940.4 Cr in FY24 from INR 744.3 Cr in FY23—the company reported a net loss of INR 1,131.2 Cr in FY24, up from INR 84.06 Cr the previous year. The widening losses are attributed mainly to increased employee-related expenses and valuation changes of its compulsorily convertible preference shares (CCPS).
As it prepares for an IPO, PhysicsWallah has filed its draft red herring prospectus (DRHP) confidentially and aims to raise $500 million through its listing. It has onboarded Axis Capital, Kotak Mahindra Capital, Goldman Sachs, and JP Morgan as lead bankers for the offering.
