Was PhysicsWallah's Acquisition of Drishti IAS Called Off?
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Synopsis
The anticipated acquisition between PhysicsWallah and Drishti IAS has reportedly fallen through. Discover the reasons behind this cancellation and what it means for both educational institutions. This decision could reshape the landscape of UPSC coaching in India. Read on to find out more.
Key Takeaways
- Acquisition called off
- Drishti IAS's strong financials
- Independent growth prioritized
- PhysicsWallah's IPO plans
- Strategic moves in edtech
New Delhi, June 6 (NationPress) The highly anticipated acquisition of the UPSC coaching institute Drishti IAS by the edtech unicorn PhysicsWallah has reportedly been cancelled.
Although the deal was in its advanced stages, it ultimately did not materialize due to various factors, as per a report from Entrackr.
Earlier in April, several reports indicated that PhysicsWallah was actively seeking acquisitions to enhance its standing in the civil services preparation sector.
The proposed acquisition of Drishti IAS was valued between Rs 2,500 and Rs 3,000 crore.
Drishti IAS, a prominent name in UPSC coaching, especially for Hindi-medium candidates, was among the leading institutes considered by PhysicsWallah, alongside other institutions like Chaitanya Academy, Rau's IAS Study Circle, and Sarrthi IAS.
According to the report, Drishti IAS assessed the acquisition proposal after being approached by PhysicsWallah.
However, due to its robust financial health and independent growth trajectory, the organization decided against proceeding with the acquisition.
The report further suggests that Drishti IAS is currently not seeking external funding or an acquisition. Established in 1999, Drishti IAS has carved a significant niche in the civil services coaching domain.
In the financial year 2023–24, this Delhi-based institute reported revenues of Rs 405 crore and a profit after tax of Rs 90 crore.
The institute is expected to continue its healthy growth into FY25.
PhysicsWallah, initially focused on online coaching for engineering and medical entrance exams, has been broadening its scope into UPSC and other competitive exams.
The acquisition of Drishti IAS was viewed as a strategic move to bolster its offline presence and diversify its educational offerings, especially in light of its impending stock market launch.
However, as of now, both PhysicsWallah and Drishti IAS have not provided any official comments on the situation.
In the meantime, reports suggest that PhysicsWallah filed its draft IPO documents confidentially in March 2025, aiming to raise approximately Rs 4,600 crore. If successful, it would mark the first Indian edtech unicorn to be listed on the stock market.
Point of View
It is crucial to remain objective while reporting on significant developments in the education sector. The decision to halt the acquisition of Drishti IAS by PhysicsWallah reflects the complexities of the edtech landscape and underscores the importance of financial independence in educational institutions.
NationPress
07/06/2025
Frequently Asked Questions
Why was the acquisition of Drishti IAS by PhysicsWallah called off?
The acquisition was called off due to various factors, including Drishti IAS's strong financial performance and decision to continue its independent growth.
What was the estimated value of the proposed acquisition?
The proposed acquisition of Drishti IAS was estimated to be worth between Rs 2,500 and Rs 3,000 crore.
Is Drishti IAS seeking external funding?
Currently, Drishti IAS is not looking to raise external funds or be acquired.
What are the financials of Drishti IAS for FY 2023-24?
In FY 2023-24, Drishti IAS reported a revenue of Rs 405 crore and a profit after tax of Rs 90 crore.
What is PhysicsWallah's future plan regarding IPO?
PhysicsWallah filed its draft IPO papers confidentially aiming to raise around Rs 4,600 crore, potentially becoming the first Indian edtech unicorn to be listed on the stock exchange.
