Edtech PhysicsWallah is in the final stages of acquiring Drishti IAS Institute which is a leading offline coaching platform for UPSC and state commission exams according to a media report. If finalized this would be the largest acquisition in the edtech sector in recent years. According to the entrackr report PhysicsWallah is expected to spend around Rs 2500 to 3000 crore for acquiring Drishti IAS. The discussions have been going on since January and an official agreement is likely to be sealed soon claimed the report citing sources. The payment structure for the acquisition will be made in multiple segments. PhysicsWallah’s Plan Before IPO The potential acquisition news has come at a time when PhysicsWallah is preparing for its initial public offering (IPO). The Noida-based firm has recently appointed three independent directors and is targeting a $5 billion valuation through a $500 million public listing. Drishti IAS CEO On Deal However Vivek Tiwari CEO of Drishti IAS denied the speculation stating “Although we have been meeting several people from different organisations (IPO Bankers PEs & Edtech founders) for our future plans nothing has been finalized so far. The information you are talking about is just a rumour which shouldnt be taken seriously at all.’’ Drishti IAS: UPSC Coaching 26 years ago Vikas Divyakirti founded Drishti IAS. It is is a famous coaching institute specializing in Civil Services Examination (CSE) preparation. The platform reported Rs 405 crore in revenue and Rs 90 crore in profit for FY24. Its Mukherjee Nagar center in Delhi earned 58% of the company’s total revenue with other centers in Prayagraj Jaipur and Karol Bagh. PhysicsWallah’s Growth  Launched nine years ago PhysicsWallah is also an edtech platform which offers live and recorded lectures test series study materials and offline hybrid coaching centers. The company which has raised over $300 million in funding was last valued at $2.8 billion after securing $210 million in a Series B round in September 2023. In FY24 PhysicsWallah’s revenue from operations surged to Rs 1940.4 crore a 160% increase from Rs 744.3 crore in FY23. However increasing expenditures led to more losses which expanded over 13 times to Rs 1131 crore in FY24 compared to Rs 84 crore in FY23. The Lightspeed and WestBridge-backed company had earlier announced its goal of achieving Rs 1000 crore in offline revenue by FY25. If the deal is completed it will improve PhysicsWallah’s position as a dominant player in both the online and offline education sectors.