The deal is part of a share acquisition agreement in February 2023, under which the company aims to gradually acquire full ownership of Utkarsh Classes by March 2028, it said in a filing.
Founded in 2018, Utkarsh Classes operates educational institutions in India and abroad, including schools, colleges, and coaching centres. The company also offers educational content and sells books and course materials online.
PhysicsWallah debuted on the bourses on November 18 with a Rs 3,480 crore initial public offering (IPO), through which it raised Rs 3,100 crore in primary capital. In its red herring prospectus (RHP), the company stated that it plans to use the proceeds for investments in its subsidiaries as well as for acquisitions.
PhysicsWallah has grown aggressively through acquisitions such as Utkarsh Classes to consolidate its position in India’s large test-prep market. In September, the company paid Rs 95 crore to acquire a 40% stake in Guiding Light Education Technologies Pvt Ltd, which offers UPSC courses under the brand Sarrthi IAS. It plans to increase its holding by an additional 45% by FY31.
In the test-prep segment, the company competes with Aakash Institute, Allen Career Institute, and Unacademy.
The company’s board has also approved fresh investments into four wholly owned subsidiaries — of up to Rs 400 crore in Penpencil Edu Services, Rs 20 crore in Finz Fintech, Rs 50 crore in Finz Finance, and Rs 18 crore in Knowledge Planet — through subscription to their equity shares.
The newly listed firm reported a 26% year-on-year (YoY) increase in operating revenue to Rs 1,051 crore for the July-September period in its first quarterly results as a public company. The company’s profit rose to Rs 70 crore in the last quarter, up from Rs 41 crore in the same period a year ago.
