Drishti IAS to continue independently ’for now’, after considering Physics Wallah deal, funding via IPO

Drishti IAS Rejects Acquisition Offers, Remains Independent

In a surprising turn of events, Drishti IAS, a leading civil services coaching institute, has announced its decision to remain independent, rejecting potential acquisition offers from major players in the EdTech industry. While the institute confirmed exploring various funding options last year, including discussions with the unicorn Physics Wallah, CEO Vivek Tiwari stated their commitment to continued independent operation.

“At Drishti IAS, our decisions are always rooted in a long-term vision,” Tiwari told ThePrint. “Though we explored options such as an IPO and strategic investments, we’ve chosen to continue independently. We believe we can continue to thrive, and will explore other options only if circumstances dictate.”

This decision comes after months of speculation regarding a potential acquisition by Physics Wallah. The news initially surfaced as rumors, but Drishti IAS has now confirmed the discussions, clarifying that they ultimately decided against any merger or acquisition.

• A Consolidation Wave: The potential acquisition of Drishti IAS, alongside other prominent institutes like Chaitanya Academy, Rau’s IAS Study Circle, and Sarathi IAS, was seen as part of a larger trend of consolidation within the Indian EdTech and test preparation market.
• Strategic Expansion: Online giants like Physics Wallah and Unacademy were seeking to expand their offline presence and diversify into the lucrative civil services coaching sector. Drishti IAS, with its extensive experience and loyal student base, particularly in Hindi-medium and regional markets, represented a highly attractive opportunity.

Drishti IAS: A Legacy of Success

Founded in 1999 by the renowned Vikas Divyakirti, Drishti IAS has become synonymous with Hindi-medium UPSC preparation. Its impressive FY24 financial performance—a revenue of ₹405 crore and a profit after tax of ₹90 crore—underscores its market dominance. Divyakirti’s widespread popularity, even extending to appearances in films like 12th Fail and millions of views on his social media lectures, speaks volumes about the institute's success.

The institute’s relocation to Noida last year, following infrastructure concerns in Mukherjee Nagar, further highlights the challenges faced by coaching centers in the wake of recent tragedies and regulatory scrutiny.

Physics Wallah's Ambitions

Physics Wallah, known for its affordable online coaching and initial success through YouTube, has been aggressively expanding its offerings. Their entry into UPSC coaching via a partnership with OnlyIAS in 2022, and the pursuit of Drishti IAS, signaled their ambition to establish a stronger offline presence and diversify ahead of a potential IPO.

The rejection of Physics Wallah’s offer marks a significant development in the Indian EdTech landscape, highlighting Drishti IAS’s confidence in its independent trajectory and its potential for continued growth.