PhysicsWallah Acquires Stake in Sarrthi IAS

PhysicsWallah has secured a minority stake in the UPSC coaching institution Sarrthi IAS, as confirmed by three informed sources. The acquisition involves a 40% stake, at a company valuation of roughly Rs 250 crore. Sarrthi IAS will maintain its independence while benefiting from the technological infrastructure of PhysicsWallah, stated one source who wished to remain unnamed.

Startup Superb reported on the PhysicsWallah and Sarrthi deal earlier in April. Sarrthi IAS, founded by Varun Jain and Dr. Shivin Chaudhry, provides courses centred around mentorship for UPSC aspirants. Their offerings include a GS Foundation course, Mains modules, Prelims revision, and interview preparation.

Impact on the UPSC Coaching Market

This acquisition signifies a consolidation within the UPSC preparation sector, a space where PhysicsWallah has been expanding its reach through its dedicated platform, PWOnlyIAS. The source mentioned that post-acquisition, the combined revenue from PWOnlyIAS and Sarrthi IAS is forecasted to exceed Rs 350 crore in FY26.

Strengthening Presence and Future Plans

For PhysicsWallah, this investment bolsters its presence in the competitive civil services test preparation market, including both UPSC and state public service commission examinations, while also enhancing its offline capability. Although there were previous considerations for larger acquisitions like Drishti IAS, those discussions did not progress.

Startup Superb has approached both PhysicsWallah and Sarrthi IAS for comments regarding this acquisition, and updates will follow should a response be received.

This stake acquisition arrives as PhysicsWallah prepares for an upcoming IPO. The company has already received approval from SEBI to submit its Draft Red Herring Prospectus (DRHP) and is aiming to raise approximately Rs 4,500 crore from the IPO.

According to data from a startup intelligence platform, PhysicsWallah has successfully raised $312 million to date. This includes a $210 million Series B funding round led by Hornbill Capital, with participation from Lightspeed, GSV, and WestBridge Capital, valuing the company at $2.8 billion.

On the financial side, led by Alakh Pandey, the firm reported a substantial 55% increase in revenue to around Rs 3,000 crore in FY25, while its losses decreased by nearly 80% during the same period. Startup Superb had covered these financial details previously.