In a significant move aimed at strengthening its presence in the southern region of India, profitable edtech unicorn Physics Wallah has announced a strategic partnership with Kerala-based edtech firm Xylem Learning. The collaboration involves a substantial investment of Rs 500 crore over the next three years by Physics Wallah. As part of the deal, Physics Wallah has acquired a 50 percent stake in Xylem Learning, while also providing strategic equity and cash investments to support the scaling up of operations.
Xylem Learning, founded by Ananthu S, specializes in offering comprehensive tuition programs for students from class 8 onward, with an integrated NEET/JEE foundation curriculum. The company has expanded its offerings to include commerce and Kerala PSC test preparation. With more than one lakh paid students enrolled in its online courses and an additional 30,000 students attending its offline or hybrid centers across five prime districts of Kerala, Xylem Learning has established a strong presence in the market.
In addition to its core offerings, Xylem Learning operates 10 tuition centers and a school-integrated program in seven different schools. It also provides free classes to over three million students through its 30 YouTube channels. With this collaboration, Xylem Learning aims to expand its reach to Tamil Nadu, Andhra Pradesh, and other southern markets, leveraging its existing foothold in the Kerala market.
This partnership aligns with Physics Wallah’s strategic expansion plans, as it continues to make strategic acquisitions in the edtech sector. In 2022, Physics Wallah acquired several companies, including iNeuron, Altis Vortex, Knowledge Planet, PrepOnline, and FreeCo. The latest deal with Xylem Learning emphasizes the exchange of technology and knowledge, leveraging the strengths of both platforms to enhance the learning experience for JEE and NEET applicants in South India.
Ananthu, the founder of Xylem Learning, expressed his motivation for the deal, citing values of affordability, trust, and education democratization. He envisions achieving a revenue target of Rs 300 crore in FY24, with a 25 percent EBITDA margin, surpassing the Rs 150 crore revenue generated in FY23. Ananthu also highlighted the shared vision between Xylem Learning and Physics Wallah, both dedicated to making quality education accessible and affordable for students.
With this strategic partnership, Physics Wallah aims to expand its footprint in the South Indian market, capitalizing on the strengths of Xylem Learning and further solidifying its position as a leading player in the edtech industry.