India’s edtech unicorn, PhysicsWallah (PW), is reportedly in advanced discussions to acquire Drishti IAS, a prominent coaching institute for civil services exam preparation, according to an Entrackr report. If finalized, the deal, valued between ₹2,500-3,000 crore, would be among the most significant acquisitions in the Indian edtech space.
The acquisition aligns with PhysicsWallah’s expansion strategy, marking its foray into UPSC and state commission exam coaching—one of India’s most competitive educational segments. It also strengthens PW’s push into hybrid education, where it aims to generate ₹1,000 crore in offline revenue by FY25.
Notably, this move comes as PhysicsWallah prepares for an initial public offering (IPO), with reports indicating a fundraising target of $500 million at a $5 billion valuation. The company has already taken steps towards a public listing by appointing three independent directors.
Founded by Vikas Divyakirti, Drishti IAS has been a key player in the civil services coaching sector for over 26 years. In FY24, the institute reported ₹405 crore in revenue and ₹90 crore in profit, with its flagship Mukherjee Nagar centre in Delhi contributing 58% of its total earnings. Other key locations include Prayagraj, Jaipur, and Karol Bagh.
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However, Drishti IAS CEO Vivek Tiwari has dismissed these acquisition reports as “mere speculation.”
Founded by Alakh Pandey, PhysicsWallah has transformed from a YouTube-based educational platform into a leading hybrid edtech firm. The startup has secured over $300 million in funding to date, with a valuation of $2.8 billion following a $210 million Series B round in September 2023.
In FY24, PW’s revenue surged to ₹1,940 crore, a significant jump from ₹744 crore in FY23. However, the company’s losses also escalated, soaring 13-fold to ₹1,131 crore in FY24 from ₹84 crore in FY23, as it aggressively invested in technology, marketing, and offline expansion.
If the deal materializes, it would cement PhysicsWallah’s position as a dominant player across multiple competitive exam categories, bridging its expertise in JEE and NEET coaching with UPSC preparation. This expansion would further solidify its presence in the offline education landscape, making it a formidable force in India’s edtech industry.
