PhysicsWallah Acquires 51% Stake in Sarrthi IAS With ₹71.8 Crore Investment

How Will PhysicsWallah’s Sarrthi IAS Acquisition Strengthen Its UPSC Coaching Business?

Edtech company PhysicsWallah (PW) has approved an investment of ₹71.8 crore in UPSC coaching platform Sarrthi IAS, increasing its ownership in the company from 40% to 51%. Following the completion of the transaction, Sarrthi IAS will become a subsidiary of PhysicsWallah, according to a stock exchange filing.

The investment marks the second tranche of PhysicsWallah’s acquisition of Guiding Light Education Technologies Private Limited, the company that operates under the Sarrthi IAS brand.

As part of the latest transaction, PW will acquire 1,100 equity shares, representing an additional 11% stake, for an aggregate consideration of approximately ₹71.81 crore. The deal will give PhysicsWallah a controlling interest in the UPSC focused education platform.

The acquisition is expected to strengthen PhysicsWallah’s presence in India’s competitive examination preparation market as the company continues to diversify beyond its core K-12 and test preparation businesses.

What Changes Has PhysicsWallah Made to the Acquisition Agreement?

Alongside approving the fresh investment, PhysicsWallah’s board has also cleared an addendum to the existing share purchase agreement.

The amendment revises the valuation methodology and purchase consideration applicable to the second tranche of the acquisition. However, the company said the remaining terms and conditions of the transaction will remain unchanged.

The acquisition is structured as a multi-stage transaction that could eventually see PhysicsWallah acquire a significantly larger stake in Sarrthi IAS over the coming years.

PhysicsWallah had initially acquired a 40% stake in Sarrthi IAS ahead of its public listing. The transaction was subsequently disclosed in the company’s IPO prospectus in November 2025.

According to the disclosure, PW entered into share purchase and shareholders’ agreements with Sarrthi IAS and its promoters in September 2025.

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Could PhysicsWallah Increase Its Stake Further?

Under the original agreement, PhysicsWallah has the option to acquire up to 85% of Sarrthi IAS through six separate tranches scheduled between FY26 and FY31.

The valuation for these transactions was linked to an EBITDA based mechanism, meaning the consideration for future stake purchases could depend on the financial performance of Sarrthi IAS.

The latest ₹71.81 crore investment represents the second step in this long-term acquisition roadmap.

Once the transaction is completed, PhysicsWallah will hold a majority 51% stake, giving it controlling ownership while potentially leaving room to increase its shareholding further under the previously agreed structure.

What Does Sarrthi IAS Do?

Founded in 2023, Sarrthi IAS provides online and offline coaching services for aspirants preparing for the Union Public Service Commission (UPSC) Civil Services Examination and other competitive examinations.

The company operates in India’s highly competitive civil services preparation market, where students increasingly use a combination of traditional classroom coaching and digital learning platforms.

By acquiring control of Sarrthi IAS, PhysicsWallah can strengthen its offerings in the UPSC preparation category while leveraging its existing technology, distribution, content, and student ecosystem.

The acquisition also allows PW to expand into a segment that differs from its traditionally strong presence in engineering and medical entrance examination preparation.

How Fast Is Sarrthi IAS Growing?

Sarrthi IAS has reported significant revenue growth since its launch.

According to the regulatory filing, the company generated ₹76.52 crore in revenue in FY26, compared with ₹28.46 crore in FY25.

In FY24, its revenue stood at just ₹1.04 crore, indicating rapid expansion over a relatively short period.

The company’s revenue increased by approximately 169% between FY25 and FY26, while its growth from FY24 reflects the rapid scaling of the platform following its early-stage launch.

At the end of FY26, Sarrthi IAS had a net worth of ₹33.96 crore.

The strong revenue trajectory could be one of the key strategic factors behind PhysicsWallah’s decision to increase its ownership and secure a controlling stake in the business.

Why Is PhysicsWallah Expanding Beyond Its Core Categories?

PhysicsWallah built its initial scale by providing affordable digital education for students preparing for engineering and medical entrance examinations such as JEE and NEET.

Over time, the company has expanded into multiple education categories, combining online learning with offline coaching centres and broader test preparation offerings.

The acquisition of Sarrthi IAS represents another step in that diversification strategy.

The UPSC Civil Services Examination preparation market represents a sizeable opportunity, with thousands of aspirants spending on coaching, study materials, test series, mentorship, and digital learning programmes every year.

Having a specialised brand such as Sarrthi IAS within its portfolio could allow PhysicsWallah to target this market without building the entire UPSC coaching business from scratch.

What Does the Deal Mean for PhysicsWallah’s Growth Strategy?

The ₹71.8 crore investment demonstrates PhysicsWallah’s continued focus on using strategic acquisitions to expand into new education categories.

By increasing its stake from 40% to 51%, PW will gain controlling ownership of a rapidly growing UPSC coaching platform while potentially benefiting from operational synergies between the two businesses.

PhysicsWallah could leverage its technology infrastructure, marketing reach, student acquisition capabilities, and nationwide education network to support Sarrthi IAS as it expands its online and offline operations.

For Sarrthi IAS, becoming a subsidiary of a larger listed edtech company could provide access to capital, technology, and distribution capabilities required to compete more aggressively in India’s civil services coaching market.

With the original agreement allowing PhysicsWallah to acquire up to 85% of the company through multiple tranches until FY31, the latest transaction may represent another stage in a longer-term integration strategy.

As PhysicsWallah continues expanding beyond its core K-12 and entrance examination categories, the Sarrthi IAS acquisition could strengthen its position as a diversified education platform serving students across multiple stages of their academic and professional journeys.