PhysicsWallah, the fast-growing edtech unicorn led by Alakh Pandey, is reportedly in the final stages of negotiations to acquire Drishti IAS, a top coaching institute for civil services exam preparation. According to a report by Entrackr, the deal size ranges between ₹2,500 crore and ₹3,000 crore. If the companies finalize the transaction, this acquisition will become one of the biggest in India’s edtech history.
The report indicates that the payment structure will follow a phased model, with disbursements linked to performance milestones over time. This approach helps reduce risk while ensuring continued growth from the acquired entity.
This strategic move could significantly strengthen PhysicsWallah’s position in the competitive test preparation landscape. By entering the Union Public Service Commission (UPSC) and state services exam coaching space, the company targets a high-potential, underserved segment of the market.
PhysicsWallah’s IPO Ambitions and Expansion Strategy
The timing of the acquisition discussions aligns with PhysicsWallah’s preparations for an Initial Public Offering (IPO). The company aims to raise $500 million in its public listing, targeting a $5 billion valuation. To bolster its corporate structure and improve transparency, PhysicsWallah recently appointed three independent directors to its board.
The Drishti IAS acquisition would serve multiple objectives. First, it allows PhysicsWallah to diversify beyond its core offerings—primarily focused on JEE (engineering) and NEET (medical) exam preparation. Second, it deepens its offline reach, a critical focus area in the company’s long-term strategy. PhysicsWallah plans to generate ₹1,000 crore from offline operations by the end of FY25, and integrating Drishti’s physical centers could fast-track this goal.
Why Drishti IAS Is a Strategic Fit
Founded by Vikas Divyakirti, Drishti IAS has operated in the competitive exam preparation space for over two decades. Known for its high-quality content, consistent results, and trusted faculty, Drishti has built a loyal following among UPSC aspirants.
In FY24, Drishti IAS posted ₹405 crore in revenue and ₹90 crore in profit. Its Mukherjee Nagar center in Delhi contributed 58% of total revenue, underscoring the strong brand equity it holds in India’s civil services exam hub. Other major centers in Prayagraj, Jaipur, and Karol Bagh also show steady growth.
With this acquisition, PhysicsWallah can leverage Drishti’s deep understanding of the UPSC ecosystem and integrate it into its tech-enabled infrastructure. This synergy creates opportunities to offer hybrid models—combining high-quality offline content with scalable digital delivery.
However, Drishti IAS CEO Vivek Tiwari has denied the report, calling the acquisition talks “a rumor that shouldn’t be taken seriously.” Despite the denial, market insiders believe the discussions are ongoing and may soon result in a formal announcement.
From YouTube to Unicorn: PhysicsWallah’s Remarkable Journey
Alakh Pandey, the founder and face of PhysicsWallah, started by uploading free physics lectures on YouTube to help students from small towns and low-income backgrounds. His accessible teaching style quickly gained traction, leading to the launch of the PhysicsWallah app in 2020.
What began as a one-man initiative now stands as a unicorn valued at $2.8 billion. The company delivers a range of educational products including live and recorded classes, doubt-solving sessions, test series, study materials, and hybrid coaching centers across India.
In the last fiscal year (FY24), PhysicsWallah saw its operational revenue surge to ₹1,940 crore, a 160% jump from ₹744 crore in FY23. But the company’s aggressive growth push also led to a sharp increase in losses, which rose to ₹1,131 crore in FY24 from ₹84 crore in FY23.
PhysicsWallah poured significant funds into technology upgrades, offline center expansion, and brand building. These investments signal the company’s ambition to evolve from a budget-friendly alternative to a full-scale education powerhouse.
Market Dynamics: Civil Services Coaching as a Growth Avenue
UPSC and state services coaching represent one of the most promising verticals in India’s test prep market. Unlike JEE and NEET, which primarily attract high school students, UPSC coaching caters to graduates and working professionals—a demographic with distinct learning habits and higher average ticket sizes.
Top-tier UPSC programs often command course fees ranging from ₹1.5 lakh to ₹2.5 lakh per student. Moreover, aspirants typically spend two to three years preparing for the exam, ensuring high customer lifetime value.
By acquiring Drishti IAS, PhysicsWallah can capture a larger share of this premium market. The deal would also give the edtech giant access to a wide range of UPSC-specific content, experienced faculty, and a loyal student base that trusts the Drishti brand.
PhysicsWallah’s scalable tech platform can further digitize Drishti’s offerings, making civil services preparation more accessible and affordable across Tier 2 and Tier 3 cities.
Challenges Ahead: Integration and Profitability
While the acquisition could offer long-term benefits, the integration of two large organizations poses its own set of challenges. Merging operations, aligning cultural values, and managing large teams across multiple locations require careful execution.
The profitability of Drishti IAS adds financial stability to PhysicsWallah’s portfolio. However, maintaining that profitability while aligning with a larger tech-driven ecosystem could demand strategic shifts. The company will need to ensure that its core philosophy—delivering quality education at affordable prices—remains intact post-acquisition.
Meanwhile, PhysicsWallah’s rising losses might concern potential IPO investors. To restore confidence, the company must streamline its spending and showcase a clear roadmap toward profitability without sacrificing its mission or growth targets.
The Bigger Picture: Consolidation in Edtech
The PhysicsWallah–Drishti IAS deal represents a larger trend of consolidation in India’s edtech sector. As funding slows and investor scrutiny increases, companies are moving toward mergers and acquisitions to boost growth, reduce customer acquisition costs, and enter new segments.
By acquiring established brands, edtech firms avoid the high cost and long gestation period of building a new vertical from scratch. They gain ready-made content libraries, trained faculty, operational experience, and brand recognition.
This consolidation trend also brings maturity to the sector. As companies shift from hypergrowth to sustainable scale, acquisitions based on synergy rather than valuations become the norm.
Final Thoughts
PhysicsWallah stands at a pivotal moment in its journey. The possible acquisition of Drishti IAS not only expands its market reach but also signals its readiness to play in the big leagues. With IPO preparations underway, PhysicsWallah aims to solidify its position as a multi-vertical, tech-enabled education leader.
If the deal closes successfully, it could reshape India’s test prep landscape, offering a hybrid model that combines the best of both worlds—Drishti’s offline expertise and PhysicsWallah’s tech-first approach. While challenges remain, the company’s bold moves highlight its determination to lead the next phase of growth in Indian edtech.