Edtech unicorn PhysicsWallah has approved an investment of Rs 71.8 crore in UPSC coaching platform Sarrthi IAS to secure a controlling stake. According to regulatory disclosures, the transaction will increase PhysicsWallah's shareholding in the company from 40% to 51%, turning Sarrthi IAS into a subsidiary.
PhysicsWallah has completed the second tranche of its acquisition of Guiding Light Education Technologies, the parent company behind Sarrthi IAS. As part of this round, the board approved an addendum to the share purchase agreement, revising the valuation method and purchase consideration while keeping all other terms unchanged.
PhysicsWallah Acquisition
Under the terms of the transaction, PhysicsWallah will acquire an additional 1,100 equity shares, representing an 11% stake, for an aggregate consideration of Rs 71.81 crore. Upon the closing of this tranche, the Delhi-based civil services preparation startup will officially operate as a subsidiary of the edtech firm.
This transaction was first outlined in PhysicsWallah IPO prospectus filed in November 2025. The filing indicated that the company had entered into share purchase and shareholders' agreements with Sarrthi IAS and its promoters in September 2025.
Long-term agreement allows PhysicsWallah to acquire up to 85% of the company across six tranches scheduled between FY26 and FY31, with the valuation linked to an EBITDA-based pricing mechanism.
UPSC Test Prep Market
Sarrthi IAS has registered rapid financial growth since its inception. Founded in 2023, the platform offers online and offline coaching for the UPSC Civil Services and other competitive examinations. The company reported a revenue of Rs 76.52 crore in FY26, a significant increase from Rs 28.46 crore in FY25 and Rs 1.04 crore in FY24. Its net worth was valued at Rs 33.96 crore at the end of FY26.
"The acquisition is expected to strengthen our presence in the UPSC and civil services examination preparation segment as we expand beyond our core K-12 and test preparation business," a spokesperson representing the company said. "Integrating Sarrthi's specialized content and curriculum aligns with our broader strategy of diversifying into high-value test preparation categories."
About Company
PhysicsWallah is an Indian educational technology company that began as a YouTube channel in 2016 before expanding into a full-scale online and offline learning platform. The company specializes in affordable test preparation for competitive exams like JEE, NEET, and various state-level and central government recruitment exams, alongside its expanding K-12 and regional language offerings.
Alakh Pandey, founder and CEO of PhysicsWallah (PW), is known for reshaping edtech sector by making quality education affordable and accessible to millions. A college dropout from Prayagraj, he began in 2014 by teaching physics on YouTube, where his lively style and free lessons quickly built a huge following. In 2020, he co‑founded PW as an app‑based platform with Prateek Maheshwari, turning it into a profitable unicorn with a growing network of offline and online learning centers across India.
