PhysicsWallah raises stake in Xylem Learning to over 77% with Rs 122 Cr investment

Edtech company PhysicsWallah (PW) has raised its stake in Xylem Learning Pvt Ltd to 77.27% by investing ₹122.9 crore. PW purchased 930 equity shares with a face value of ₹100 each, paying a premium of ₹13.2 lakh.

In a regulatory filing, the Alakh Pandey-led company stated that the acquisition is part of a 2023 agreement to buy up to 100% of Xylem in multiple stages. The latest deal updates the terms and structure of the remaining stages including conditions tied to valuation. PW said these changes are intended to align the acquisition with its long-term strategy.

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PhysicsWallah had earlier acquired a 50% stake in the Kerala-based company for ₹500 crore and later increased its stake to 64.98%.

After the acquisition, the company expanded into South India and began offering courses in multiple languages, starting with Kerala. Xylem now serves as the backbone for PhysicsWallah’s offline expansion in the southern states.

In its RHP, PW had planned to invest ₹47.2 crore from its IPO proceeds into Xylem. This investment is intended to support the expansion of offline centres and cover lease costs for Xylem’s existing centres and student hostels.

Founded in 2019 by Dr Ananthu S, Xylem Learning is a regional edtech platform focused on competitive exams, offering a mix of free content and paid online and hybrid coaching. Its FY25 revenue was ₹322.26 crore up 43% from ₹225.47 crore in FY24.

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While PhysicsWallah operates nationally across multiple exam segments, Xylem follows a similar model on a regional scale which primarily targeting South India especially Kerala. Xylem’s business is largely focused on offline coaching.

As of June 30, 2025, Xylem ran 28 offline centres, mostly in Kerala and one in Tamil Nadu. PW noted that the network has grown rapidly over the past few years, with total spending on offline centres exceeding Rs 83 crore as of June 2025.

PhysicsWallah reported a 26% year-on-year increase in operating revenue to Rs 1051 crore for the July–September quarter, its first as a public company. Profit rose to Rs 70 crore, up from Rs 41 crore in the same period last year.

The company went public on November 18 with a ₹3,480 crore IPO, raising ₹3,100 crore in primary capital. In its red herring prospectus (RHP), PW said it plans to use the proceeds for investments in subsidiaries and acquisitions.

Before the IPO, PW completed the third tranche of its investment in subsidiary Utkarsh Classes, infusing ₹26.5 crore to raise its stake from 63.25% to 75.5%.

The board had also approved fresh investments in four wholly owned subsidiaries: up to ₹400 crore in Penpencil Edu Services, ₹20 crore in Finz Fintech, ₹50 crore in Finz Finance, and ₹18 crore in Knowledge Planet through equity subscriptions.

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