PhysicsWallah, the edtech unicorn known for its affordable online coaching, is in advanced talks to acquire civil services coaching institute Drishti IAS. The deal is estimated to be valued at around Rs 2,500 crore, marking a significant move in the test-prep segment.
The potential acquisition comes as PhysicsWallah gears up for its IPO, signalling its intent to expand beyond engineering and medical entrance exams into the competitive UPSC coaching space. Drishti IAS, a well-established player in the segment, reported a revenue of Rs 405 crore and a profit of Rs 90 crore in FY24, making it an attractive asset for PhysicsWallah’s portfolio.
Industry experts note that the acquisition could strengthen PhysicsWallah’s offline presence while adding a high-margin business vertical to its operations. The test-prep market in India has seen increasing consolidation, with major edtech players looking to diversify offerings and deepen their footprint across multiple competitive exam categories.
While PhysicsWallah has traditionally focused on affordable education for JEE and NEET aspirants, acquiring Drishti IAS would give it a foothold in the highly sought-after UPSC preparation market. The move also aligns with the company’s pre-IPO strategy, potentially boosting investor confidence by demonstrating growth beyond its core verticals.
With the edtech sector evolving and offline coaching gaining renewed traction post-pandemic, the deal could set the stage for more acquisitions in the competitive test-prep space. However, both companies have yet to confirm the final terms of the transaction.