PhysicsWallah Expands Through Acquisition of Sarrthi IAS
PhysicsWallah, an edtech unicorn, is actively pursuing acquisitions and is in advanced negotiations to acquire Sarrthi IAS, according to sources close to the matter. This step follows previous talks with other coaching platforms focused on UPSC preparation, notably Drishti IAS.
Sources revealed that PhysicsWallah has recognised the UPSC preparatory market as a key growth area and is currently engaging with several coaching providers, including Sarrthi. The discussions have been ongoing for several weeks, with the deal terms nearing completion.
Sarrthi IAS, established by Varun Jain and Shivin Chaudhry, offers courses centred on mentorship for UPSC examinations. Their offerings include GS Foundation courses, Mains modules, Prelims revision, and interview preparation.
These discussions are taking place while PhysicsWallah is already negotiating a substantial deal estimated between Rs 2,500 and 3,000 crore to acquire Drishti IAS. Startup Superb was the first to disclose the developments regarding this potential acquisition.
As reported by The Economic Times, PhysicsWallah, led by Alakh Pandey, has also commenced acquisition talks with Chaitanya Academy and Rau’s IAS Study Circle.
One source mentioned that the acquisition of Sarrthi is expected to be valued between Rs 120 and 130 crore. They shared that Sarrthi completed FY25 with a revenue of Rs 35 crore, along with profits around Rs 20 crore. However, it is noted that the specifics of the deal may alter as negotiations progress.
Sarrthi IAS, based in Delhi, has been seeking to merge with a larger entity for some time and has explored discussions with various other edtech companies.
In response to inquiries from Startup Superb, Varun Jain, the Founder of Sarrthi IAS, indicated that the information was inaccurate and that no current discussions are in progress. PhysicsWallah has chosen not to comment on this situation.
Additionally, PhysicsWallah is preparing for its initial public offering (IPO). Recently, the company appointed three independent directors and is aiming to secure $500 million with a valuation of $5 billion. Currently, with over $300 million raised, PhysicsWallah holds a valuation of $2.8 billion and reported revenue of Rs 1,940.4 crore for FY24.
These upcoming acquisitions come after a two-year hiatus for the WestBridge-backed organisation. In June 2023, they acquired a controlling interest in Xylem Learning, a hybrid learning platform based in Kerala, and their diverse portfolio also includes UAE-based Knowledge Planet, as well as iNeuron, Altis Vortex, PrepOnline, and FreeCo, none of which have seen considerable growth following their mergers.