PhysicsWallah Increases Xylem Stake With INR 122 Cr Investment

Listed edtech major PhysicsWallah (PW) has increased its stake in Xylem Learning Pvt Ltd to 77.27% with an investment of INR 122.9 Cr. It bought 930 equity shares worth INR 100 (FV) apiece, at a premium of INR 13.2 Lakh. 

In a regulatory disclosure today, the Alakh Pandey-led company informed that the acquisition was part of an earlier agreement signed in 2023 to buy up to 100% of Xylem in multiple stages. The latest deal revises the terms and structure of the remaining tranches, including valuation linked conditions. PW said these changes are meant to align the acquisition with its long-term strategy.

Important to mention that it had acquired 50% stake in the Kerala-based company for INR 500 Cr. Since then, it expanded its stake in the subsidiary to 64.98%.

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

In its RHP, PW had outlined plans to invest INR 47.2 Cr from its IPO proceeds into Xylem. The investment is supposed to fuel offline centres expansion and paying 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, blending free content with paid online and hybrid coaching. Its FY25 turnover stood at INR 322.26 Cr, up 43%% from INR 225.47 Cr in FY24.

While PW operates at national scale and in multiple exam segments, Xylem’s model is conceptually similar — just on a more regional and concentrated scale for the South Indian market (especially Kerala). Xylem’s business is heavily centred on offline coaching

As of June 30, 2025, Xylem operated 28 offline centres. Most of these are located in Kerala, with one centre in Tamil Nadu. PW said the network has expanded rapidly over the past few years, with cumulative spending on offline centres crossing INR 830 Mn as of June 2025.

Important to mention that the Xylem investment constitutes one part of PW’s broader expansion plan via investments. Along with disclosing its Q2 financial performance last week, PW announced  fresh investments in its subsidiaries — PenPencil, Finz Fintech and Knowledge Planet. The investments, which cumulatively stood at about INR 500n Cr, were made to support working capital, corporate requirements and expansion plans. 

On the financial front, PW’s net profit zoomed 69% to INR 69.7 Cr from INR 41.1 Cr in the same quarter previous year. Its operating revenue increased 26% YoY and 24% QoQ to INR 1,051.2 Cr.

Its shares ended 2.42% lower at INR 130.8 on the BSE today.