Is Vikas Divyakirti's Drishti IAS really being sold?
These days a business deal is being discussed on social media. It is being said that edtech unicorn Physics Wallah, which is famous for its cheap coaching for competitive exams like JEE and NEET, is now going to buy Drishti IAS, a coaching institute that prepares for UPSC. It is even being said that this deal could be worth around Rs 2,500 crore, which is considered a big step in the test-prep segment. However, the CEO of Drishti IAS has said a big thing about what is the truth of this deal.
Why is this deal special?
According to a news from Financial Express, the IPO of Physics Wallah is about to come and this acquisition will strengthen the company in the UPSC segment apart from engineering and medical. Drishti IAS earned a revenue of Rs 405 crore and a profit of Rs 90 crore in FY24, which makes it attractive for Physics Wallah. This deal will also give strength to Physics Wallah in the offline market, as Drishti IAS has a strong hold in offline coaching.
FY24 performance of Drishti IAS
According to ET report, Drishti IAS earned a revenue of Rs 405 crore in FY24, which is 20 percent more than last year. The company's profit (PAT) was Rs 90 crore. Drishti IAS has also strengthened its wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital platform, where more than 1.5 million students took advantage of online courses. The company has expanded its reach to cities like Delhi, Noida, Lucknow, Prayagraj, jaipur and indore and plans to expand to 10 more cities next year.
Alakh Pandey benefits from the deal
Physics Wallah, which was till now focused on JEE-NEET, will enter a bigger segment like UPSC. students will benefit from Drishti IAS's hindi medium courses and current affairs material. Consolidation is increasing in the edtech sector and this deal can open the way for other big acquisitions.
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