KKN Gurugram Desk | Drishti IAS, one of the most renowned coaching institutions in India for Civil Services Examination (CSE) preparation, is currently in talks for a potential acquisition by PhysicsWallah (PW), an emerging giant in the online EdTech sector. Founded by Vikas Divyakirti 26 years ago, Drishti IAS has grown into a leading name in India’s educational sphere, especially in the preparation for UPSC exams. The acquisition discussions, if finalized, could revolutionize the EdTech industry and mark one of the largest deals in the history of Indian online education.

The Deal: A Strategic Move for PhysicsWallah

In recent reports by InTracker, it has been revealed that Alakh Pandey, the founder of PhysicsWallah, has expressed interest in purchasing Drishti IAS for a deal estimated to be worth ₹2,500 crores. This acquisition, if completed, would not only solidify PhysicsWallah’s presence in the competitive exam preparation domain but also create a synergy between two of the most influential players in the EdTech market. While the discussions are still in their early stages, the deal could change the face of education in India.

For context, Drishti IAS has been a trusted name for aspirants preparing for UPSC exams, offering a blend of online and offline services that cater to a vast demographic across India. On the other hand, PhysicsWallah, a platform that started as a YouTube channel, has grown exponentially and has now positioned itself as a leader in affordable, quality online education for competitive exams.

Why the Acquisition Matters

1. A Major Shift in the EdTech Industry

The potential acquisition signals a larger trend in the Indian EdTech industry, which has been evolving rapidly over the past decade. With increasing competition, EdTech giants are seeking to expand their portfolios by acquiring established names. The merger between Drishti IAS and PhysicsWallah could set a new benchmark in the EdTech sector, combining Drishti’s expertise in Civil Services exam preparation with PhysicsWallah’s technology-driven approach and vast online reach.

2. The IPO Factor: PhysicsWallah’s Growth Trajectory

PhysicsWallah is preparing to launch its Initial Public Offering (IPO) with a target valuation of approximately $5 billion (₹50,000 crores). The company has been growing at an unprecedented rate, with a revenue of ₹1,940.4 crores in FY 2024 — a staggering 160% growth compared to the previous year. The expected IPO would raise ₹4,300 crores, a move that could further fuel its expansion plans.

The acquisition of Drishti IAS by PhysicsWallah seems to be a strategic step in their journey, as both companies are in talks for the deal to be finalized post-IPO. The merger would allow PhysicsWallah to diversify its offerings, integrate a new dimension to its existing services, and significantly boost its market position.

Drishti IAS: A Pioneer in UPSC Coaching

Founding and Legacy

Drishti IAS was founded by Vikas Divyakirti, an educational visionary who started the institution 26 years ago. His mission was simple: to provide affordable, effective, and result-oriented coaching to UPSC aspirants. Over the years, Drishti IAS has earned a reputation for its unique teaching methodology, experienced faculty, and comprehensive study materials.

The coaching institute has multiple centers across India, including in major hubs such as Delhi (Mukherjee Nagar), Prayagraj, Jaipur, and Karol Bagh. Drishti IAS generated ₹405 crores in revenue for FY 2024, with a net profit of ₹90 crores. Notably, the Delhi center contributed to 58% of the company’s total revenue, a testament to the city’s prominence in UPSC preparations.

The Financials: Drishti IAS and PhysicsWallah

Drishti IAS Financial Performance

Drishti IAS has consistently shown strong financial growth. In FY 2024, the institute generated ₹405 crores in revenue, with a profit margin of ₹90 crores. The growth of Drishti IAS, especially in the competitive exam preparation segment, has been largely driven by its diverse offerings, including offline classes, online courses, and printed study materials.

PhysicsWallah Financial Performance

PhysicsWallah, founded by Alakh Pandey, has seen explosive growth in recent years. With a revenue of ₹1,940.4 crores in FY 2024, a 160% increase from ₹744.3 crores in FY 2023, the company has cemented its position as one of the top players in the online education space. Despite the growth, the company reported a significant loss due to increased operational costs, with losses rising from ₹84 crores in FY 2023 to ₹1,131 crores in FY 2024.

The Potential Impact of the Deal

1. Strengthened Market Presence

If the deal goes through, PhysicsWallah will gain a robust foothold in the UPSC coaching market, allowing it to offer a broader range of services to students. This could create a highly competitive platform, combining the strengths of both brands in preparation for one of India’s most challenging exams.

2. Enhanced Technology Integration

PhysicsWallah has been known for its innovative use of technology in education, offering affordable yet high-quality content through its online platform. The acquisition of Drishti IAS could lead to the integration of Drishti’s established curriculum and teaching techniques with PhysicsWallah’s tech-driven model. This synergy could offer a powerful combination for students, allowing them to benefit from both platforms’ strengths.

3. Increased Competition for Other EdTech Players

The merger between Drishti IAS and PhysicsWallah could potentially change the dynamics of the EdTech market in India. Other major players like Byju’s, Unacademy, and Vedantu might face increased pressure as the combined force of these two organizations could create a more formidable competitor in the space.

What Lies Ahead: IPO and Further Expansion

PhysicsWallah’s plans for an IPO are already underway, with the company eyeing a significant valuation and raising funds for future expansions. Following the IPO, it is expected that the talks for acquiring Drishti IAS will gain momentum. The merger, once completed, could enable both companies to focus on other verticals, including test preparation for various competitive exams, further expanding their reach across India and even internationally.

The merger could also pave the way for a series of acquisitions in the future, as EdTech companies seek to consolidate their market position amid growing competition and evolving market demands.

The potential acquisition of Drishti IAS by PhysicsWallah represents a major shift in the Indian EdTech ecosystem. This deal, if finalized, would mark a transformative moment in the competitive exam preparation space, with both brands combining their strengths to offer comprehensive, tech-driven educational solutions. The growing interest in online education, paired with the potential of an IPO, positions PhysicsWallah to become an even more significant player in the Indian education sector.