PhysicsWallah Raises Stake in Xylem Learning to 77.27 Percent Before the transaction, PhysicsWallah held 64.98 percent of Xylem Learning's fully diluted equity, which increased to 77.27 percent following the deal.
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Edtech company PhysicsWallah has approved the acquisition of an additional 12.29 percent stake in its subsidiary Xylem Learning, raising its total holding to 77.27 percent, according to a regulatory filing made on Thursday.
The decision was approved by the company's board through a third amendment to the shareholders' agreement signed with Xylem Learning and its existing investors.
As part of the transaction, PhysicsWallah will purchase 930 equity shares from current shareholders for a total cash consideration of INR 122.9 crore. Before this deal, the company held 64.98 percent of Xylem Learning's fully diluted equity share capital.
PhysicsWallah first entered into a shareholders' agreement with Xylem Learning in June 2023. The agreement was later amended in June 2023 and February 2025. These arrangements allow PhysicsWallah to increase its ownership in phases, with the option to acquire up to 100 percent equity in the company over time.
Xylem Learning was incorporated in December 2020 and operates in the education sector. The Kerala-based company provides preparation for competitive examinations such as JEE and NEET, along with foundation level courses. It offers both online and offline learning formats. According to filings, Xylem Learning reported revenue of INR 322.26 crore in the financial year 2025.
The move comes shortly after PhysicsWallah increased its stake in another subsidiary, Utkarsh Classes and Edutech Private Limited. Earlier this month, the company raised its holding in Utkarsh from 63.25 percent to 75.50 percent by acquiring an additional tranche of shares for INR 26.5 crore in cash. The audit committee approved the third tranche of investment on December 8 under an existing share acquisition agreement. PhysicsWallah has stated that it plans to acquire full ownership of Utkarsh by March 2028.
During the same audit committee meeting, the group also approved further investments into its wholly owned subsidiaries to support working capital needs and ongoing operations. These include a subscription of up to INR 399.85 crore into PenPencil Edu Services Private Limited, up to INR 20 crore into Finz Fintech Private Limited, and up to USD 2 million into Knowledge Planet Holding Limited. The filings noted that these investments will be made through subscriptions and that the entities will remain fully owned by the group.
PhysicsWallah was founded in 2016 as a YouTube based learning channel and has since grown into a larger education platform offering online courses, classroom centres and hybrid programmes. The company primarily serves students in tier II and tier III cities preparing for engineering, medical and government entrance examinations.
In recent years, the company has steadily increased its control over offline coaching and hybrid education businesses as part of its expansion strategy.
Last month, PhysicsWallah made its public market debut.
Before the initial public offering, the company had raised a total of USD 312 million across multiple funding rounds, including a Series B round in September 2024.
