PhysicsWallah is reportedly in the final stages of acquiring Delhi-based Sarrthi IAS, a mentorship-driven UPSC coaching institute. This acquisition marks PhysicsWallah’s bold move into the government exam prep space as it gears up for a big IPO.
UPSC Aspirations Drive Strategic Growth
PhysicsWallah has traditionally been known for its dominance in IIT-JEE and NEET coaching. Now it’s eyeing the UPSC preparation market—a critical segment in India’s USD 17.2 billion (INR 1.48 lakh crore) test prep industry by 2029. The PhysicsWallah-Sarrthi IAS deal will play a key role in this transition.
Some industry reports suggested that the Noida-based firm is in advanced talks to acquire Sarrthi IAS, co-founded by Varun Jain and Shivin Chaudhry. The deal is valued between INR 120-130 crore and will be structured in tranches, possibly subject to last minute changes.
Sarrthi IAS, known for its personalized mentorship and comprehensive GS Foundation, Prelims, Mains and interview preparation modules, had INR 35 crore revenue and INR 20 crore profit in FY25—a rare profitability profile in the coaching industry.
Both parties have denied the talks but insiders say the terms are almost finalised.
PhysicsWallah-Sarrthi IAS Deal Part of Bigger Acquisition Spree
The PhysicsWallah-Sarrthi IAS deal is not an isolated move. The edtech firm is exploring acquisitions of 7-8 coaching institutes including big names like Drishti IAS, Rau’s IAS Study Circle and Chaitanya Academy.
Drishti IAS is reportedly in advanced talks for a mega deal valued at INR 2,500-3,000 crore but its CEO has publicly denied the talks. These acquisitions will help PhysicsWallah strengthen its presence in UPSC domain and build a vertical that caters to one of India’s most competitive and prestigious exams.
Funding Fueling the PhysicsWallah-Sarrthi IAS Strategy
The company’s growth is backed by its USD 210 million (~INR 1,808.02 crore) funding round in 2024 led by Lightspeed Venture Partners, GSV Ventures and WestBridge Capital. This round valued PhysicsWallah at USD 2.8 billion (~INR 24,107.02 crore) and co-founder Prateek Maheshwari said the funds were for acquisitions and growth.
Since then PhysicsWallah has expanded to over 150 offline centers and offers coaching for nearly a dozen competitive exams including chartered accountancy and UPSC.
The company had also entered into a joint venture with Utkarsh Classes in 2023 and invested INR 100 crore to strengthen its offerings for government job aspirants. This is a long term commitment to this segment.
Financials
While PhysicsWallah has scaled up, it has come at a cost. In FY24 the company saw a 2.6X increase in revenue to INR 1,940.4 crore but reported a net loss of INR 1,131.2 crore. The loss was mainly due to increase in staff costs and valuation adjustments for compulsorily convertible preference shares (CCPS).
Still, the company’s leadership remains optimistic, viewing these short-term strains as investments in long-term market capture.
IPO Preparations Underway
The PhysicsWallah-Sarrthi IAS acquisition could significantly bolster the company’s IPO narrative. The edtech firm has already confidentially filed its DRHP, planning to raise USD 500 million (~INR 4,300 crore) at a target valuation of USD 5 billion (~INR 43,000 crore).
To meet regulatory and investor expectations, PhysicsWallah has recently added three independent directors to its board, a clear move to enhance governance ahead of its public debut. Physicswallah IPO will be led by Axis Capital, Kotak Mahindra Capital, Goldman Sachs, and JP Morgan.
A New Chapter in Indian Edtech
From its humble beginnings as a YouTube channel launched by Alakh Pandey in 2016, PhysicsWallah has evolved into one of India’s most watched edtech success stories. The PhysicsWallah-Sarrthi IAS acquisition, if finalized, would mark a critical milestone in the company’s journey—solidifying its position in the high-stakes UPSC test prep ecosystem.
As the education landscape in India continues to evolve, PhysicsWallah’s pivot to government exam preparation reflects not only market foresight but also a commitment to broadening access to quality mentorship across verticals.
Additional Insight:
- Industry Impact: If completed, the PhysicsWallah-Sarrthi IAS deal could spark consolidation trends in the UPSC prep market, pushing smaller players to explore partnerships or exits.
- Investor Confidence: Strong financials from Sarrthi IAS could help counterbalance PhysicsWallah’s FY24 losses in IPO roadshows.
- Learner Access: Integration with PhysicsWallah’s digital infrastructure may allow Sarrthi IAS’s content to reach Tier 2 and Tier 3 cities more effectively.
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