Edtech Meets Offline: PW Expands Footprint in South India

Edtech giant ups stake in Kerala-based Xylem Learning to 77.27% as part of strategic offline expansion in South India.

PhysicsWallah Raises Stake to 77.27% in Xylem

PhysicsWallah (PW) has significantly increased its ownership in Xylem Learning Pvt Ltd, raising its stake to 77.27% through a fresh ₹122.9 Cr investment.

• PW acquired 930 equity shares at a face value of ₹100, but with a premium of ₹13.2 lakh per share.
• This marks the third tranche of the acquisition process, part of a multi-stage agreement signed in 2023 to eventually acquire 100% of Xylem.

The company clarified that this step also involves revised terms and structure for upcoming tranches, aligning them with PW’s long-term strategic objectives.

A Steady Climb in Ownership Since Initial Deal

PhysicsWallah first acquired a 50% stake in Xylem for ₹500 Cr, making headlines in the edtech sector.

• The stake was then increased to 64.98%, and now further to 77.27%.
• The phased approach reflects careful integration of the regional player into PW’s broader national operations.

This structured acquisition allows PW to balance valuation, performance metrics, and synergy development between its digital-first model and Xylem’s regionally rooted offline presence.

Strengthening Regional Presence Through Xylem

Xylem has become the foundation of PhysicsWallah’s offline expansion in South India, particularly in Kerala.

• Following the acquisition, PW launched multilingual courses, starting with Xylem’s core market.
• Xylem’s offline-first model gave PW the infrastructure and brand presence needed in the southern states.

As of June 30, 2025, Xylem operated 28 offline centres, mostly in Kerala with one in Tamil Nadu. PW disclosed that cumulative investment in these centres crossed ₹83 Cr, underlining the capital-intensive nature of the expansion.

Xylem’s Business Model and Growth Trajectory

Founded in 2019 by Dr. Ananthu S, Xylem Learning focuses on competitive exam preparation, blending free content with paid hybrid coaching.

• Its FY25 turnover reached ₹322.26 Cr, a sharp 43% increase from ₹225.47 Cr in FY24.
• The company’s success comes from its localized approach, deep community integration, and focus on offline coaching formats.

While PhysicsWallah operates across India and covers multiple exam segments, Xylem complements this with a concentrated regional strategy that builds loyalty and high engagement in Kerala and nearby markets.

Part of PW’s Larger Expansion Blueprint

The Xylem investment is one piece of PW’s larger growth puzzle.

• In its IPO’s RHP, PW had earmarked ₹47.2 Cr specifically for Xylem, aimed at expanding offline centres and funding hostel and lease infrastructure.
• Simultaneously, PW disclosed fresh investments worth ₹500 Cr across other subsidiaries like PenPencil, Finz Fintech, and Knowledge Planet, supporting working capital and corporate needs.

This capital deployment strategy reflects PhysicsWallah’s shift towards a blended learning ecosystem, leveraging both digital and physical formats.

Financial Performance: Solid Growth Across the Board

PhysicsWallah’s own performance has been robust.

• Net profit rose 69% YoY to ₹69.7 Cr, up from ₹41.1 Cr.
• Operating revenue hit ₹1,051.2 Cr, growing 26% YoY and 24% QoQ, indicating strong demand and effective cost management.

The company’s financial momentum, combined with targeted regional acquisitions, suggests a sustainable path toward national leadership with deep local roots.