PhysicsWallah, the listed edtech company founded by Alakh Pandey, has acquired an additional 11 percent stake in UPSC coaching platform Sarrthi IAS for Rs 71.81 crore, taking its total holding to 51 percent. The transaction gives PhysicsWallah majority control of the Gurugram-based test prep startup and strengthens its position in the civil services examination segment.

What You Need to Know

  • PhysicsWallah increased its stake in Sarrthi IAS from 40 percent to 51 percent for Rs 71.81 crore
  • The deal is part of a broader agreement to acquire up to 85 percent of Sarrthi in six tranches through FY31
  • Sarrthi IAS reported Rs 76.52 crore revenue in FY26, up 169 percent from Rs 28.46 crore in FY25
  • PhysicsWallah posted Q4 FY26 revenue of Rs 918.8 crore, up 51 percent year-on-year

The Deal Structure

PhysicsWallah first acquired a 40 percent stake in Sarrthi IAS in September 2025 at a valuation of approximately Rs 250 crore as part of a shareholders agreement signed that month. The latest transaction represents the second tranche, consisting of the purchase of 1,100 equity shares. Under the original agreement, PhysicsWallah plans to increase its holding to 85 percent of the company's fully diluted equity share capital by FY31.

The company stated in a regulatory filing that the acquisition would strengthen its presence in the UPSC and civil services examination preparation segment, which has become a key growth frontier for the Noida-based firm.

Who Is Sarrthi IAS

Founded in June 2023 by Varun Jain and Shivin Chaudhry, Sarrthi IAS offers both online and offline coaching for civil services examinations. Its services include GS Foundation courses, Prelims and Mains modules, and interview guidance. The platform follows a mentorship-driven model that focuses on personalized guidance for UPSC aspirants.

The company's financial performance has been strong. It reported a turnover of Rs 76.52 crore in FY26, a 169 percent jump from Rs 28.46 crore in the previous fiscal. Its profit after tax stood at Rs 39 crore, making it a profitable acquisition target.

PhysicsWallah's Edtech Empire

PhysicsWallah began as a YouTube channel in 2016 offering free coaching for competitive exams before evolving into a full-fledged edtech platform. The company listed on Indian stock exchanges in November 2025 at Rs 145 per share, a 33 percent premium to its IPO issue price of Rs 109.

The company has been on an acquisition spree, adding Sarrthi IAS to a portfolio that includes Xylem Learning, iNeuron, Altis Vortex, PrepOnline, FreeCo, and Knowledge Planet. On the financial front, PhysicsWallah narrowed its consolidated net loss by 76 percent to Rs 69.1 crore in Q4 FY26 from Rs 289.3 crore a year earlier, while operating revenue rose 51 percent to Rs 918.8 crore.

Its shares closed at Rs 135.20 on the day of the announcement.

The UPSC Gold Rush

The civil services examination segment in India has become a battleground for edtech companies. With millions of aspirants appearing for UPSC exams each year and a highly fragmented coaching market, the opportunity is significant. PhysicsWallah's deeper push into this segment mirrors a broader consolidation trend, with major players acquiring regional and specialized coaching brands to capture market share.

Sarrthi IAS, despite being a relatively young player, has demonstrated strong unit economics with high revenue growth and profitability. That combination makes it an attractive building block for PhysicsWallah's UPSC strategy.

Bottom Line

PhysicsWallah's majority acquisition of Sarrthi IAS signals a deliberate, phased strategy to dominate the UPSC test prep market. With a profitable target, a clear path to full ownership by FY31, and strong revenue growth on both sides, the deal strengthens PhysicsWallah's position ahead of what the market expects will be an increasingly competitive phase for Indian edtech.