This is what sources close to Harsh Upadhyay & Entrackr are saying.
Here's my take:
Drishti IAS' FY24 revenue was ₹405 crore, and PAT was ₹90 crore. That’s a 22% margin in a notoriously low-margin industry. From their POV, why sell at ₹2,500–₹3,000 crore when you’re doing 4x revenue organically. They’ve probably seen the chaos in other acquired coaching brands post-edtech takeovers.
For PhysicsWallah, it was only about IPO narrative. This deal was a defensive diversification play before IPO.
I think this deal fell off because of misaligned incentives. PW wants scale and synergy. Drishti wants legacy and autonomy. You can’t slap a valuation on founder temperament, and that’s often the most under-modeled variable in any strategic deal.
In a funding winter with exit desperation everywhere, saying NO to ₹3,000 crore takes more conviction than saying yes.
Respect Vikas Divyakirti sir.
startup business physicswallah IAS UPSC education
Image Credit: Entrackr
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