PhysicsWallah acquires controlling stake in Sarrthi IAS with Rs 71.8 Cr investment

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Edtech company PhysicsWallah (PW) has approved an investment of Rs 71.8 crore in UPSC coaching platform Sarrthi IAS. The transaction will increase its stake in the company from 40% to 51%, making Sarrthi IAS a subsidiary, according to a stock exchange filing.
The investment is part of the second tranche of PW's acquisition of Guiding Light Education Technologies Private Limited, which operates under the Sarrthi IAS brand. The company'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 of the transaction unchanged.
As part of the transaction, PW will acquire 1,100 equity shares, representing an additional 11% stake, for an aggregate consideration of Rs 71.81 crore. Following the completion of the tranche, Sarrthi IAS will become a subsidiary of the listed edtech firm.
The latest investment comes around 10 months after Entrackr exclusively reported that PhysicsWallah had acquired a 40% stake in Sarrthi IAS ahead of its public listing. The acquisition was 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.
Founded in 2023, Sarrthi IAS provides online and offline coaching for UPSC Civil Services and other competitive examinations. According to the filing, the company recorded Rs 76.52 crore in revenue in FY26, compared with Rs 28.46 crore in FY25 and Rs 1.04 crore in FY24. It had a net worth of Rs 33.96 crore at the end of FY26.
The company said the acquisition is expected to strengthen its presence in the UPSC and civil services examination preparation segment as it expands beyond its core K12 and test preparation business.

document fetched 2026-07-17 08:07