PhysicsWallah takes majority control of Sarrthi IAS in ₹71.81 crore deal
What's the deal? PhysicsWallah (PW) has approved a ₹71.81 crore investment to raise its stake in UPSC coaching platform Sarrthi IAS from 40% to 51%, making it a subsidiary. The move buys an additional 11% equity and marks the second tranche of PW's multi-stage acquisition of Guiding Light Education Technologies, which operates the Sarrthi IAS brand.
What's the endgame? PW is building a broad education platform spanning UPSC, government job prep, higher education, and professional upskilling. The deal deepens its push beyond core JEE, NEET, and school offerings into the crowded civil services segment.
By the numbers: Founded in 2023, Sarrthi IAS has grown fast. Revenue jumped from ₹1.04 crore in FY24 to ₹28.46 crore in FY25 and ₹76.52 crore in FY26, with net worth at ₹33.96 crore at FY26-end. That trajectory underpins PW's decision to take control.
Why now? The original agreement runs across six tranches from FY26 to FY31, targeting up to 85% ownership. PW revised the valuation methodology for this tranche through an addendum; other terms remain unchanged. Valuation is tied to an EBITDA-based mechanism, aligning future payments with performance.
What could go wrong? PW must integrate operations, scale offline centres, and hold growth momentum in a competitive market — all while sustaining profitability across multiple verticals.
The signal: India's edtech leaders are consolidating through phased, performance-linked acquisitions rather than one-off buyouts. For PW, owning niche exam brands like Sarrthi IAS is a bet that breadth across competitive exams beats depth in any single category.
Read more: Lapaas Voice
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