New Delhi | April 2025 — India’s leading edtech unicorn PhysicsWallah (PW) is reportedly in advanced stages of acquiring Drishti IAS, a premier Hindi-medium civil services coaching institute. The deal, valued between ₹2,500 and ₹3,000 crore, would mark one of the most significant acquisitions in India’s test-prep space to date.
Strategic Move Ahead of IPO
The potential acquisition aligns with PhysicsWallah’s broader expansion strategy as it gears up for a highly anticipated IPO. The Noida-based edtech startup aims to raise $500 million at a $5 billion valuation, and has recently appointed three independent directors in preparation for its public listing.
Strengthening Hybrid & Offline Reach
The acquisition of Drishti IAS, founded by Vikas Divyakirti, would help PhysicsWallah solidify its position in the UPSC and state PSC preparation segment — a domain where Drishti has been a dominant Hindi-medium player for over 26 years. In FY24, Drishti IAS reported ₹405 crore in revenue and ₹90 crore in profit, with its flagship Mukherjee Nagar centre contributing over 58% of earnings.
PhysicsWallah, founded in 2016 by Alakh Pandey, has grown from a YouTube channel into a robust hybrid edtech ecosystem offering online classes, test series, and offline centers. In FY24, it reported a revenue jump to ₹1,940 crore, up from ₹744 crore in FY23. However, its losses deepened significantly to ₹1,131 crore, reflecting heavy investments in tech, marketing, and physical infrastructure.
A Bold Bet on the UPSC Segment
The acquisition would represent a strategic foray for PW into one of India’s toughest and most prestigious competitive exams. It also comes amidst ongoing consolidation in the Indian edtech sector, as companies diversify across exam categories and blend online scale with offline credibility.
According to sources, the payment structure is expected to be performance-linked, executed in tranches. While multiple reports confirm the deal is nearing finalization, Drishti IAS CEO Vivek Tiwari has publicly denied the development, calling it “mere speculation.”
What This Means for the Market
If finalized, the merger would:
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Expand PhysicsWallah’s portfolio beyond NEET and JEE into UPSC.
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Strengthen its offline presence across key educational hubs like Delhi, Jaipur, and Prayagraj.
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Add a high-margin, legacy player to PW’s offerings ahead of its IPO.
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Solidify PW’s ambition to generate ₹1,000 crore in offline revenue by FY25.
Investor and Market Implications
PhysicsWallah has raised over $300 million to date from backers including Westbridge, Lightspeed Ventures, GSV Ventures, and Hornbill Capital. Its strategic pivot toward offline education and diversified test prep signals confidence in long-term hybrid learning models in India.
