On December 8, 2025, PhysicsWallah completed the third tranche of an acquisition accord, purchasing 25,599 equity shares from existing shareholders of Utkarsh Classes & Edutech Private Limited for ₹26.5 crore.
This move raises PhysicsWallah’s total holding from 63.25% to 75.50%. The acquisition is part of a multi-tranche Share Acquisition Terms Agreement (SATA) signed in February 2023, under which PhysicsWallah aims to eventually own 100% of Utkarsh Classes by March 2028.
Why this matters — Consolidation strategy and business rationale
✅ Full control over a key subsidiary
By raising its stake to 75.5%, PhysicsWallah strengthens its control over Utkarsh Classes — giving it majority ownership and greater decision-making power over the subsidiary’s operations, strategy and expansion.
📚 Integrated online + offline + hybrid model
Utkarsh Classes runs offline and hybrid coaching/education centres. With stronger control, PhysicsWallah can better align Utkarsh’s offline-hybrid offerings with its own online edtech platform — potentially creating a seamless omni-channel education ecosystem.
🔄 Efficient capital allocation & growth rollout
The acquisition was funded with ₹26.5 crore — a relatively modest amount compared to potential long-term benefits. By absorbing Utkarsh Classes gradually, PhysicsWallah can manage integration risks and scale operations steadily.
🧑🎓 Scaling reach to more exam categories & geographies
Utkarsh Classes already serves students via centers and content; with consolidated ownership, PhysicsWallah could leverage that reach to expand into new exam segments and regions — boosting its overall addressable market.
Company context — IPO, financial strength & expansion plans
PhysicsWallah recently made a successful IPO, listing at a premium — giving it fresh capital and public-market valuation headroom.
In its IPO prospectus, the company had earmarked part of the proceeds to raise its stake in Utkarsh Classes.
The current stake increase reflects the execution of that plan and signals that management remains committed to building a hybrid learning network — combining online, offline and preparatory-exam coaching under one roof.
What remains to watch — What’s next before full acquisition
- PhysicsWallah aims to acquire 100% of Utkarsh Classes by March 2028 under the SATA agreement.
- Performance metrics post-integration: how well the merged operations leverage synergies, maintain quality, and scale student enrolments across both online and offline segments.
- Regulatory, financial and operational integration challenges — merging different workflows, educational models and centre-management under a unified brand.
- Market competition — how this expanded capacity positions PhysicsWallah against other edtech and coaching players in a crowded education market.
What this means for students, investors & edtech market
- For students: A unified platform combining online curriculums, offline/hybrid coaching and broader course selection — could offer more flexibility and tailored learning options.
- For investors: The stake increase demonstrates confident execution of post-IPO growth plans, potentially boosting long-term value if integration and scaling go well.
- For the edtech market: Signals a trend toward consolidation — edtech firms seeking hybrid models, and the blending of online reach with offline infrastructure for deeper market penetration.
Final thought
PhysicsWallah’s decision to raise its stake in Utkarsh Classes to 75.5% is a strategic move toward consolidation and control — positioning it for a robust hybrid-education model combining digital, offline and coaching-centre networks. If executed well, this could strengthen its competitive edge and reshape how large-scale education delivery works in India.
