PhysicsWallah in Talks to Acquire Drishti IAS for Rs 2,500 Crore: Report
- PhysicsWallah's revenue from operations jumped to Rs 1,940 crore in FY24.
- Drishti IAS reported Rs 405 crore in revenue and Rs 90 crore in profit for FY24.
PhysicsWallah, the Noida-based edtech unicorn known for its affordable coaching programs, is in advanced talks to acquire Drishti IAS, a prominent name in civil services exam coaching.
The acquisition could be valued between Rs 2,500-3,000 crore, making it one of the largest deals in India's edtech sector in recent years.
The deal, if finalized, is expected to be structured with payments made in tranches, based on future performance milestones.
This structure highlights the importance of performance metrics for both parties involved. The acquisition would mark a strategic move for PhysicsWallah, allowing it to enter the lucrative UPSC and state commission exam preparation market.
This acquisition comes at a time when PhysicsWallah is preparing for its initial public offering (IPO). The edtech giant is reportedly looking to raise $500 million at a $5 billion valuation.
The acquisition of Drishti IAS aligns with PhysicsWallah’s broader goal of expanding into offline education. The company aims to generate Rs 1,000 crore in offline revenue by FY25.
Newsletter
The corridor, every morning.
Funding rounds and cross-border capital moves, one email, five minutes.
Founded by Vikas Divyakirti, Drishti IAS has established a strong foothold in the civil services exam preparation industry over the past 26 years.
In FY24, Drishti IAS reported Rs 405 crore in revenue and Rs 90 crore in profit, with its flagship Mukherjee Nagar centre in Delhi contributing 58% of its total revenue.
However, Drishti IAS CEO Vivek Tiwari has denied the reports of the acquisition, calling them "a rumour that shouldn't be taken seriously."
If finalized, the acquisition would allow PhysicsWallah to diversify its offerings beyond JEE and NEET coaching, strengthening its position across various exam categories and further expanding its offline presence.
Edited by Annette George
More in Acquisition
