• PhysicsWallah buys an additional 12.29 percent stake in Xylem Learning
• Deal valued at Rs 123 crore strengthens majority control
• Move aligns with the company’s offline and hybrid expansion strategy

Edtech unicorn PhysicsWallah has increased its stake in Xylem Learning to 77.27 percent after approving the acquisition of an additional 12.29 percent stake for Rs 122.9 crore, according to a regulatory filing made on Thursday.

The company’s board approved the transaction through the third amendment to the shareholders’ agreement signed with Xylem Learning and its existing investors. As part of the deal, PhysicsWallah will acquire 930 equity shares from current shareholders in an all-cash transaction.

PhysicsWallah first entered into a shareholders’ agreement with Xylem Learning in June 2023, with subsequent amendments allowing it to raise ownership in stages and eventually acquire up to 100 percent equity. Before this latest transaction, the company held 64.98 percent of Xylem’s fully diluted share capital.

Founded in December 2020, Xylem Learning focuses on preparing students for competitive exams such as JEE, NEET, and foundation-level courses. The Kerala-based edtech company offers both online and offline learning programs and reported Rs 322.26 crore in revenue in FY25.

This acquisition follows a similar move earlier this month, when PhysicsWallah increased its stake in Utkarsh Classes & Edutech from 63.25 percent to 75.50 percent by investing Rs 26.5 crore in cash. These deals highlight the company’s broader inorganic growth strategy.

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Over the past few years, PhysicsWallah has steadily strengthened control over regional coaching institutes and hybrid education players. The strategy aims to expand its reach in key markets and deepen its offline and blended learning presence.

Financially, PhysicsWallah continues to show strong momentum. Its operating revenue rose nearly 26 percent to Rs 1,051.26 crore in Q2 FY26, while profit jumped 70 percent to Rs 69.7 crore during the same period.