The PhysicsWallah acquisition of a controlling interest in Sarrthi IAS moved a decisive step forward on 16 July 2026, as PhysicsWallah paid ₹71.81 crore to raise its shareholding in the UPSC coaching platform from 40% to 51%, as publicly reported on 2026-07-16. The transaction, which is the second tranche of a structured multi-year deal, formally converts Sarrthi IAS — operated by Guiding Light Education Technologies Private Limited — into a subsidiary of the listed edtech firm. PhysicsWallah disclosed the move through a stock exchange filing on the same date.
Quick Highlights
- Acquirer: PhysicsWallah (PW)
- Target: Sarrthi IAS (Guiding Light Education Technologies Private Limited)
- Deal Value (Tranche II): ₹71.81 crore (cash consideration)
- Stake Acquired (This Tranche): Additional 11% (1,100 equity shares), taking total holding to 51%
- Sarrthi IAS Founders: Varun Jain and Dr. Shivin Chaudhry
- PhysicsWallah Founder: Alakh Pandey
- Acquirer Headquarters: Noida, Uttar Pradesh, India
- Announcement Date: 16 July 2026
Deal Breakdown
Deal Rationale
Sarrthi IAS has established itself as a leading platform in the civil services (UPSC) preparation segment, offering test-preparation programmes across online and offline learning formats. The acquisition aligns with PhysicsWallah’s strategy of expanding beyond engineering and medical entrance coaching into high-growth education segments such as government examinations and civil services. PhysicsWallah stated it will continue to work with the Sarrthi IAS management team to strengthen academic excellence, enhance learner outcomes, and expand the platform’s reach through technology-led innovation. Sarrthi IAS delivered a strong FY26 performance, reporting revenue of ₹77 crore and profit after tax (PAT) of ₹39 crore, reflecting its continued growth and strong operating performance.
Deal Structure
PhysicsWallah’s board also approved an addendum to the share purchase agreement to revise the valuation methodology and purchase consideration for the second tranche, while leaving the remaining terms unchanged; under the revised terms, PW acquired 1,100 equity shares, representing an additional 11% stake, for an aggregate cash consideration of ₹71.81 crore. The acquisition was originally disclosed in the company’s IPO prospectus in November 2025, which stated that PW had signed share purchase and shareholders’ agreements with Sarrthi IAS and its promoters in September 2025 to acquire up to 85% of the company in six tranches between FY26 and FY31, with the valuation linked to an EBITDA-based mechanism. The transaction is being undertaken on an arm’s-length basis based on an independent valuation report and does not qualify as a related-party transaction.
Expansion Plans
As publicly reported, the partnership is expected to expand Sarrthi IAS’s reach across the country by leveraging digital innovation, advanced technology, and high-quality educational content; PhysicsWallah plans to increase its ownership in Sarrthi IAS to 85% by FY31 through multiple investment tranches. The acquisition will be completed based on predefined performance parameters and an EBITDA-linked valuation mechanism. The company also plans to integrate Artificial Intelligence (AI) and other emerging technologies to make competitive exam preparation more effective and personalised.
Significance
By increasing its ownership above 50%, PhysicsWallah gains management control over Sarrthi IAS, allowing it to consolidate financials and integrate operations more effectively — a phased acquisition strategy that signals management’s confidence in the long-term growth potential of the UPSC preparation market. The majority acquisition of Sarrthi IAS marks another step in PhysicsWallah’s strategy to build a diversified education platform spanning K-12 learning, competitive examinations, and higher education, while strengthening its position in the rapidly growing UPSC coaching market. India’s test preparation industry continues to benefit from increasing digital adoption, rising demand for hybrid learning models, and growing participation in competitive examinations; companies that offer multi-category education platforms with strong technology integration and recognised brands are well-positioned to benefit from these long-term structural trends. Industry observers note that India’s competitive examination market continues to witness strong growth, encouraging edtech companies to strengthen their presence through strategic partnerships and acquisitions — and PhysicsWallah’s majority acquisition of Sarrthi IAS is seen as an important step in this direction.
These details have been verified against multiple publicly available reports as of 2026-07-16.
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Disclaimer: This report is compiled from publicly available sources and is for informational purposes only; funding figures are as publicly reported and may be subject to change.
