PhysicsWallah (PW) is reportedly in advanced stages of acquiring Drishti IAS, a prominent UPSC coaching institute, ahead of its much-anticipated initial public offering (IPO). Some industry reports suggest the deal is valued between INR 2,500-3,000 crore, which would be one of the largest acquisitions in the Indian edtech space in recent years.
Drishti IAS Acquisition – A Pre-IPO Power Play
The acquisition comes at a crucial time for PhysicsWallah, which is looking to go public and raise USD 500 million (~INR 4,277 crore) at a USD 5 billion (~INR 42,779 crore) valuation. As part of its IPO plans, the Noida-based company has already appointed three independent directors and is talking to bankers, private equity firms and edtech founders.
If it happens, the acquisition will allow PhysicsWallah to expand its footprint in the offline UPSC preparation market, a segment it has not catered to so far. Known for offering affordable online coaching for JEE and NEET aspirants, the move is a diversification strategy and a foray into India’s growing civil services aspirant base.
Drishti IAS: A Profitable Prize
Founded by Vikas Divyakirti, Drishti IAS has been a well-known name in civil services coaching for over 26 years. In FY24, the institute had INR 405 crore in revenue and INR 90 crore in profit after tax (PAT), making it a high-margin and attractive addition to PhysicsWallah’s portfolio. Its flagship Mukherjee Nagar centre contributes to 58% of its coaching revenue, while other centres in Prayagraj, Jaipur and Karol Bagh also play a key role.
Despite the buzz, Drishti IAS CEO Vivek Tiwari has denied the reports, saying, “The information you are talking about is just a rumour which shouldn’t be taken seriously at all.” PhysicsWallah has not issued any official statement on the deal.
Strategic Fit & Market Implications
The Indian test-prep industry is seeing a phase of consolidation, with companies moving towards hybrid (online + offline) models. For PhysicsWallah, which has already committed to INR 1,000 crore in offline revenue by FY25, this acquisition will be a big milestone.
The edtech player has already seen rapid growth. In FY24, PhysicsWallah’s revenue grew to INR 1,940.4 crore from INR 744.3 crore in FY23. But this growth came at the cost of rising losses which increased 13X to INR 1,131 crore in FY24 from INR 84 crore in FY23. Bringing a profitable offline business like Drishti IAS into the fold will help balance PW’s books and instill more confidence among IPO investors.
Deal Structure and Future Outlook
According to sources, the acquisition will be structured in tranches, with payouts tied to future performance milestones — a structure that mitigates risk while ensuring performance alignment.
The deal, if closed, will also strengthen PhysicsWallah’s offline infrastructure and broaden its offerings across competitive exams — from engineering and medical entrances to the prestigious UPSC and state services exams.
Conclusion
As the edtech sector stabilizes post-pandemic and hybrid learning gains momentum, PhysicsWallah’s bold move toward acquiring Drishti IAS marks a pivotal moment. Whether the deal is officially confirmed or not, the move indicates PW’s aggressive intent to dominate India’s $7–8 billion test prep market and emerge as a multi-domain education powerhouse.
With Physicswallah IPO preparations in full swing and the industry watching closely, all eyes are now on the official announcement and the strategic roadmap that follows.
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