1️⃣ Deal Collapsed at Final Stage
Edtech unicorn PhysicsWallah was reportedly in advanced talks to acquire established UPSC coaching provider Drishti IAS, but the deal—likely valued between ₹2,500–3,000 crore—has been called off. The announcement came in early June 2025
2️⃣ Drishti IAS Chooses Independence
Drishti’s CEO, Vivek Tiwari, confirmed that after considering several funding routes—including IPOs and strategic partnerships—they’ve opted to continue independently for now, prioritizing their long-term vision and stable profitability
3️⃣ Financials & Strategic Perspectives
- Drishti’s FY24 performance: ₹405 crore revenue, ₹90 crore PAT—an impressive ~22% margin
- PhysicsWallah’s aggressive expansion: Diversifying into UPSC, K‑12, and professional courses, backed by a ₹210 million capital raise ahead of its planned ₹4,600 crore IPO
4️⃣ Why the Deal Fell Through
Industry insiders cite strategic misalignment and valuation differences:
- Drishti believes in sustaining growth on its own terms, without dilution of brand or ethos.
- The deal’s price—though high—didn’t align with Drishti’s intrinsic value and growth potential
5️⃣ Broader Implications for Edtech
- Consolidation trend slows: The deal’s collapse signals caution in the edtech sector, where not all players are rushing to merge.
- Founder autonomy matters: Drishti’s decision highlights the importance of independence and legacy in education.
- PhysicsWallah’s IPO narrative: The withdrawal may shift momentum from inorganic growth to internal strengthening, potentially bolstering investor confidence
✅ Final Thoughts
The fallout of the PhysicsWallah–Drishti IAS deal underlines a turning point in Indian edtech: strong brands like Drishti prefer sustainable, independent paths over acquisition, even by unicorns. For PhysicsWallah, it’s a moment to recalibrate strategy—potentially refocusing on profitability and internal growth ahead of its IPO.
