PhysicsWallah in talks to buy Vikas Divyakirti's Drishti IAS for Rs 2,500 crore: Report

PhysicsWallah, the edtech unicorn known for its affordable coaching programs, is in advanced negotiations to acquire Drishti IAS, a major player in civil services exam preparation, Entrackr reported.

If finalized, the deal—estimated at Rs 2,500-3,000 crore—would be one of the largest acquisitions in India's edtech sector in recent years.

The report further said that the payment for the acquisition would be made in tranches and tied to future performance milestones.

IPO plans and market expansion

The report comes as PhysicsWallah prepares for an initial public offering (IPO). The Noida-based edtech unicorn recently appointed three independent directors and is reportedly aiming to raise $500 million at a $5 billion valuation in the upcoming public listing.

The acquisition would mark the Alakh Pandey-led startup's entry into UPSC and state commission exam preparation, a lucrative market segment dominated by established coaching centres. The move also aligns with its push into offline education, where it aims to generate Rs 1,000 crore in offline revenue by FY25.

Drishti IAS' market presence

Founded by Vikas Divyakirti, Drishti IAS has built a strong presence in civil services exam coaching over 26 years. In FY24, the institute reported Rs 405 crore in revenue and Rs 90 crore in profit, with its flagship Mukherjee Nagar centre in Delhi accounting for 58% of total revenue, followed by locations in Prayagraj, Jaipur, and Karol Bagh.

However, Drishti IAS CEO Vivek Tiwari denied the media report, calling the speculation "a rumour that shouldn't be taken seriously."

For PhysicsWallah, the acquisition would not only diversify its offerings beyond JEE and NEET coaching but also enhance its offline presence, positioning the company as a dominant player across multiple exam categories.

PhysicsWallah's growth and financial challenges

Founded by Alakh Pandey, PhysicsWallah has evolved from a YouTube-based coaching platform into a full-fledged hybrid edtech unicorn, offering live and recorded lectures, test series, and offline centres. 

The startup has raised over $300 million to date and was last valued at $2.8 billion following a $210 million Series B round in September last year.

Its revenue from operations jumped to Rs 1,940 crore in FY24 from Rs 744 crore in FY23. However, its losses also surged 13-fold, reaching Rs 1,131 crore in FY24, compared to Rs 84 crore in FY23, as the company ramped up its investments in technology, offline expansion, and marketing.