Physics Wallah, a profitable edtech unicorn, has signed a strategic partnership with Kerala-based edtech firm Xylem Learning, under which it plans to invest Rs 500 crore over the next three years.

Moreover, the edtech unicorn has acquired a 50 per cent stake in the Kerala-based edtech firm. The deal also involves strategic equity and cash investments in Xylem and scaling up operations.

As per the edtech unicorn, the current deal would help expand its base in the South Indian market.

Physics Wallah Acquires Xylem Learning

Founded by Ananthu S, Xylem Learning offers tuition from class 8th onward with an integrated NEET/JEE foundation program. The edtech startup has also expanded into commerce and Kerala PSC test preparation.

Xylem Learning has more than one lakh paid students across its various online courses and 30,000 students in its offline or hybrid centres located across five prime districts of Kerala.

The Kerala-based edtech firm also runs 10 tuition centres and a school-integrated programme in seven different schools. Additionally, the edtech startup provides free classes to over three million students through its 30 YouTube channels.

Claiming to have a strong presence in the Kerala market, Xylem Learning now plans to expand to Tamil Nadu, Andhra Pradesh, and other southern markets. In 2022, PhysicsWallah acquired several companies, including iNeuron, Altis Vortex, Knowledge Planet, PrepOnline, and FreeCo.

The latest deal, based on the exchange of technology and knowledge, would harness the capabilities of both platforms to deliver the learning experience for JEE and NEET applicants in South India.

As per Ananthu, the deal is motivated by the values of affordability, trust, and education democratisation. Ananthu added that the target is to achieve Rs 300 crore in revenue with a 25 percent EBITDA margin in FY24, an increase from Rs 150 crore in FY23.

He also expressed alignment with Alakh Pandey’s vision, as both organisations are dedicated to making quality education accessible and affordable for students.

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