PhysicsWallah (PW), one of India’s fastest-growing edtech startups, has acquired a 40% stake in UPSC coaching institute Sarrthi IAS, valuing the Delhi-based firm at around ₹250 crore. Founded in 2023, Sarrthi offers both app-based and offline coaching for civil services, now gaining access to PW’s robust tech stack. This deal strengthens PW’s footprint in the ₹8,000-cr UPSC prep market, helping it compete with leaders like Drishti IAS and Vision IAS, and comes just as PW gears up to list publicly with SEBI’s approval for a ₹4,600-crore IPO at a $3.7-billion valuation.
The much-anticipated acquisition of Drishti IAS by edtech unicorn PW (PhysicsWallah) has officially been called off last month, according to two sources familiar with the matter. Despite reaching advanced stages of discussion, the deal failed to materialize due to strategic differences and Drishti IAS’s strong independent performance. Check full details of this deal.
Aggressive Funding, Acquisitions, and Growth
PW started as Alakh Pandey’s low-cost YouTube channel in 2016 and quickly scaled through both organic growth and acquisitions. Since 2022, it has snapped up edtech and publishing brands such as iNeuron (AI skilling), FreeCo (doubt-solving), Xylem Learning (test prep), Knowledge Planet (UAE-based, for international expansion), PrepOnline, Altis Vortex, and more.
In late 2023 and 2024, the company closed a $210 million Series B round led by Hornbill Capital, with Lightspeed, WestBridge, and GSV Ventures participating, raising its valuation to $2.8 billion—before further pre-IPO funding nudged it to $3.7 billion.
PW’s aggressive growth pushed operating revenue from ₹744 crore (FY23) to ₹1,940 crore (FY24), then soaring past ₹3,000 crore in FY25—a 53% jump. Offline expansion was key: over 200 centers and 5 million paid users versus 3.6 million in FY24.
Financials: Profitability, Losses, and Spending
Despite eye-catching revenue, losses surged 13.5X in FY24 to ₹1,131 crore due to CCPS fair value changes, big ESOP and hiring costs, and expansion pushes. For context, PW’s net profit dropped to ₹16 crore in FY23 (from ₹98 crore in FY22) as it spent more on team expansion, branch launches, and acquisitions. Marketing costs have remained below 10% of revenue, and the company is essentially debt-free with over ₹2,000 crore in reserves.
However, insiders say PW achieved breakeven in FY25, with an EBITDA around ₹200 crore, thanks to rising enrolments, controlled expenses, and mature offline business.
Read this: Physics Wallah to offer 100% scholarship to children of martyrs across India
Acquisition Spree as Growth Strategy
PW’s M&A spree has shaped its all-in study ecosystem—adding books, content, doubt-solving, hybrid and international play. Some headline deals include:
- Xylem Learning (South Indian exam prep, 2023)
- Knowledge Planet (Gulf region, 2022)
- iNeuron (AI/data science, 2022, reported ~$30M value)
- Altis Vortex, PrepOnline, FreeCo, and others
Recent talks to acquire Drishti IAS reportedly fell through, but the company continues to scout for strategic buys.
IPO and What Lies Ahead
With SEBI approval in hand, PW is set for a landmark ₹4,600-crore IPO, aiming to raise ₹4,000 crore in fresh capital at a valuation of ₹35,000–40,000 crore ($3.7–4.5 billion). The IPO will help PW expand into new categories, build on its hybrid model, and possibly venture more aggressively abroad.
in last week of July, PW has received the SEBI’s approval to launch its IPO. This marks a significant milestone, as PW becomes the first Indian ed-tech company to receive IPO approval through the confidential pre-filing route—an option that allows companies to keep financial details undisclosed until a later stage.
Final Thoughts
PhysicsWallah’s journey from scrappy disruptor to IPO-bound edtech leader is marked by outsized acquisitions, rapid category expansion, and a strong bet on offline education, all while keeping eye on cost discipline and profitability. While the IPO will test market appetite for Indian edtech in a post-pandemic world, PW’s moves show it’s not slowing down on its mission to democratize and dominate learning for millions.
