PhysicsWallah Acquires Controlling Stake in Sarrthi IAS with ₹71.8 Crore Investment
NEW DELHI — Leading Indian edtech unicorn PhysicsWallah (PW) has officially approved a further investment of ₹71.81 crore in the UPSC coaching platform Sarrthi IAS. The move increases PW's equity stake from 40% to 51%, granting it majority control and turning Sarrthi IAS into a subsidiary.
According to recent stock exchange filings, this transaction marks the execution of the second tranche of PhysicsWallah’s multi-stage acquisition plan for Guiding Light Education Technologies Private Limited, the parent entity that operates the Sarrthi IAS brand.
Inside the Deal: Valuation & Tranche Details
Under the terms of the updated agreement, the board approved an addendum to the initial share purchase agreement to revise the valuation methodology and purchase consideration specifically for this second phase. PW will acquire an additional 1,100 equity shares—representing an 11% bump in ownership—for an aggregate sum of ₹71.81 crore.
The deal is part of an aggressive, long-term acquisition strategy mapped out in PW’s IPO prospectus. The original agreements signed in late 2025 outlined a roadmap for PhysicsWallah to acquire up to 85% of Sarrthi IAS across six tranches spanning from FY26 to FY31, heavily tied to an EBITDA-based valuation mechanism. As part of the wider integration, associated prominent educational assets—including the popular YouTube channel "Clarity for UPSC by Dr. Shivin"—have also legally shifted under the corporate umbrella.
Rocketing Revenues in the UPSC Segment
Founded in 2023 by Varun Jain and Dr. Shivin Chaudhry, Sarrthi IAS offers both online and offline mentorship-driven coaching for the UPSC Civil Services and State Public Service Commission exams. The platform has experienced parabolic growth since its inception:
FY24 Revenue: ₹1.04 crore
FY25 Revenue: ₹28.46 crore
FY26 Revenue: ₹76.52 crore
By the end of FY26, Sarrthi IAS reported a solid net worth of ₹33.96 crore.
Strategic Implications for PhysicsWallah
While PhysicsWallah made its name dominating the high-volume K-12, JEE, and NEET preparation landscapes, it has proactively diversified into government test prep, upskilling, and executive education.
This acquisition significantly bolsters its civil services vertical (which includes PWOnlyIAS). Reports indicate that PW’s combined UPSC business ecosystem is on track to cross a massive ₹350 crore in revenue. While Sarrthi IAS will continue to leverage PW’s expansive technological infrastructure and capital, the platform is expected to maintain its distinct, mentorship-focused identity to retain its hyper-loyal student base.
The consolidation arrives at a pivotal structural time for PhysicsWallah as the edtech giant solidifies its financial books ahead of a highly anticipated public market debut.