Edtech unicorn PhysicsWallah has acquired a 50% stake in Kerala-based Xylem Learning for an undisclosed sum, in a bid to expand its presence in the southern parts of the country. The unicorn will also invest Rs 500 crore over three years to scale Xylem's business in south India.
PhysicsWallah’s co-founder and chief executive officer (CEO) Alakh Pandey said that the company will invest Rs 500 crore in three years to expand the "Xylem model of Hybrid Learning" to other adjoining sister states.
He, however, said that to do so, the company will need robust team building, content development, technological innovation, expansion in other categories and hybrid centres, and, therefore, will also look at more mergers and acquisitions in South India.
Founded by Ananthu S, a 26-year-old MBBS graduate, Xylem Learning offers coaching for entrance exams such as Joint Entrance Examination (JEE) and the National Eligibility cum Entrance Test (NEET) in a hybrid model in Kerala. It recently broadened its scope by venturing into commerce and Kerala PSC test preparation.
Xylem Learning offers free classes to over 3 million students via 30 YouTube channels. It also has over 100,000 students who are enrolled in its paid online courses. It currently operates its offline/hybrid centres located across five key districts in Kerala.
The company is aiming to achieve Rs 300 crore in revenue with 25% Ebitda (earnings before interest, taxes, depreciation, and amortisation) in the ongoing financial year, up from 150 Crore in FY23, said Dr Ananthu.
Meanwhile, for the last few months, PhysicsWallah, which raised $100 million from Westbridge and GSV Ventures in June last year and achieved unicorn status in its maiden fundraising, has been on an acquisition spree at a time when most edtech companies are saving cash to extend their runways. The Noida-based startup, in March, acquired United Arab Emirates (UAE)-based edtech startup Knowledge Planet, marking its foray into the global market.
Last year, the company had acquired multiple startups, including online medical entrance coaching platform PrepOnline, exam preparation books publisher Altis Vortex, upskilling platform iNeuron.ai, doubt-solving startup FreeCo in August, UPSC preparation platform OnlyIAS.