In a significant development in the Indian edtech sector, the much-anticipated acquisition of Drishti IAS by unicorn startup PhysicsWallah has officially been called off, according to two individuals familiar with the matter. The deal, which had progressed to advanced stages, failed to materialize due to a combination of strategic and financial considerations.
In April 2025, Theindiabizz had exclusively reported that PhysicsWallah was actively pursuing acquisitions in the Union Public Service Commission (UPSC) test prep segment to strengthen its position in the competitive civil services coaching space. The potential acquisition of Drishti IAS was reportedly valued between ₹2,500 crore and ₹3,000 crore.
Drishti IAS was one among several reputed coaching institutes being evaluated, including Chaitanya Academy, Rau’s IAS Study Circle, and Sarrthi IAS. The move was part of PhysicsWallah’s broader plan to diversify beyond engineering and medical entrance exams and expand its offline footprint.
One of the sources, requesting anonymity, stated, “Drishti IAS considered the proposal after being approached by PhysicsWallah. However, given its strong financial performance and profitability, the company has decided to continue operating independently. It is not looking to raise external capital or pursue acquisition opportunities at this point.”
Founded in 1999, Drishti IAS has carved a niche in UPSC preparation, particularly catering to Hindi-medium aspirants. The Delhi-based coaching institute reported a revenue of ₹405 crore and a net profit of ₹90 crore in FY24. The company is projected to post solid growth in FY25 as well, further reinforcing its position in the competitive exam segment.
PhysicsWallah, on the other hand, has gained nationwide popularity for its low-cost online coaching and recently shifted focus to capture a slice of the lucrative UPSC coaching market. The Drishti IAS deal was seen as a strategic leap to strengthen its offline dominance and build a broader educational portfolio ahead of its IPO plans.
While PhysicsWallah declined to comment, Drishti IAS did not respond to media queries at the time of publication.
Earlier reports indicated that PhysicsWallah confidentially filed draft papers in March to raise ₹4,600 crore through an initial public offering (IPO). If successful, it would become the first Indian edtech unicorn to be listed on the public markets—a move that could reshape investor sentiment toward the sector.
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