New Delhi, 9 April 2025: Edtech unicorn PhysicsWallah (PW), best known for its dominance in the engineering and medical entrance coaching space, is now turning its focus toward India’s high-stakes civil services examination market. The company is reportedly evaluating multiple acquisition targets to bolster its footprint in the competitive Union Public Service Commission (UPSC) test preparation segment, a move that signals its ambition to become a leading multi-exam edtech powerhouse.
According to people familiar with the matter, PW is in advanced discussions to acquire “seven to eight assets,” including well-established names in the UPSC coaching ecosystem such as Chaitanya Academy, Drishti IAS, and Rau’s IAS Study Circle. These firms are among the most recognized players in the UPSC test prep domain, offering extensive classroom programs, online content, and publishing support for aspiring civil servants.
One of the sources, speaking on the condition of anonymity, said the acquisitions are expected to be funded using a portion of the company’s recently raised primary capital. “The deals will likely be structured through a combination of upfront investment and performance-linked payments disbursed in tranches,” the person said. This structure, which is increasingly common in the edtech space, allows the acquiring firm to reduce risk and ensure continuity in performance.
Expanding Beyond NEET and JEE
PhysicsWallah has traditionally focused on providing affordable and accessible coaching for the Joint Entrance Examination (JEE) and the National Eligibility cum Entrance Test (NEET), which are gateway exams for engineering and medical education in India. The company runs over 150 offline centers across the country and has seen exponential growth in student enrollments post-pandemic.
However, the edtech player has recently diversified its offerings and now caters to nearly 30 competitive exams, including UPSC, Chartered Accountancy (CA), SSC, Banking, and State Public Service Commission (PSC) exams. The UPSC segment in particular has emerged as a high-potential market due to the sheer volume of aspirants and the prestige associated with securing a position in the Indian civil services.
“UPSC is a natural next step for PhysicsWallah,” said an industry analyst who tracks edtech trends. “It is a high-margin, high-loyalty segment that also enjoys strong brand equity. If executed well, the company could replicate its NEET-JEE playbook here.”
IPO in the Pipeline
PW’s acquisition push comes at a time when the company is preparing for its public market debut. In March, it filed confidential draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) aimed at raising ₹4,000 crore. The proposed IPO is expected to value the company between ₹35,000 and 40,000 crore, positioning it among the most valuable education startups in India.
Market observers believe the potential acquisitions in the UPSC space could help boost investor confidence ahead of the IPO by showcasing the company’s intent to become a diversified edtech leader, rather than remaining pigeonholed in just NEET and JEE preparation.
“The IPO timing is strategic. By adding UPSC to its core portfolio, PW is signaling that it is building a long-term, sustainable edtech brand. Investors are likely to view this positively,” said a Mumbai-based investment banker familiar with the deal.
Strong Funding Backing
The company has been on a strong capitalization path over the past year. In 2024, it raised $210 million in the largest funding round for an Indian edtech firm that year. The round was led by Hornbill Capital and Lightspeed and gave the company a post-money valuation of $2.8 billion.
More recently, in early 2025, PW completed a $20–25 million secondary transaction led by WestBridge Capital, an existing investor. This round included an Employee Stock Ownership Plan (ESOP) buyback, allowing early employees and angel investors to partially exit and realize gains.
Edtech Consolidation Wave
PhysicsWallah’s planned acquisitions are part of a broader consolidation trend in the Indian edtech space. Faced with rising customer acquisition costs and operational challenges, many mid-sized and legacy coaching institutes are looking for partnerships or exits. At the same time, large players are eyeing inorganic growth strategies to gain quick market share and strengthen their physical presence across India.
With this move, PhysicsWallah could significantly expand its footprint in the UPSC coaching belt, especially in cities like Delhi, Jaipur, and Hyderabad, which are considered hubs for IAS preparation.
If the deals materialize, PhysicsWallah will not only gain access to a new revenue stream but also tap into an aspirational audience base looking for digital-first yet affordable preparation options for India’s toughest exam.
As the edtech sector matures and readies for a new growth phase, PhysicsWallah appears to be building a diversified, resilient business that extends far beyond its original mission. The UPSC push could well be the beginning of a new chapter for India’s fastest-growing edtech brand.
