Alakh Pandey-led edtech unicorn PhysicsWallah (PW) has recently made headlines with its acquisition of a 50% stake in Kerala-based Xylem Learning. This strategic move, valued at INR 500 Cr (approximately $61.04 Mn), signifies PhysicsWallah’s commitment to fortifying its presence in the southern market.
The deal between PhysicsWallah and Xylem Learning involves a combination of primary and secondary capital. Over the next three years, PhysicsWallah will invest INR 500 Cr into Xylem, aiming to leverage the incoming funding to expand their reach in Tamil Nadu, Andhra Pradesh, and other southern markets.
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PhysicsWallah Mega Deal with Xylem Learning to Transform EdTech in South India
Xylem Learning, founded in 2019 by Dr Ananthu S, has made significant strides in the education sector. Through its 30 YouTube channels, Xylem has garnered over 3 million students across South India. Additionally, they boast a substantial number of 1 lakh paid students enrolled in their online courses and 30,000 students attending their offline/hybrid centers spread across five districts in Kerala.
Xylem has expanded its services to include commerce and Kerala PSC exam preparation, with 10 tuition centres and a school-integrated programme spanning seven schools. This multi-faceted approach has contributed to Xylem’s growing prominence in the edtech industry.
The founder and CEO of PhysicsWallah, Alakh Pandey, expressed his joy and delight about the collaboration with Xylem Learning. He emphasized that this collaboration not only aligns with their shared vision of providing quality education to all but also accelerates their strategic goal of becoming the leading education platform in South India. Pandey said that the funding will make it easier for Xylem’s hybrid learning methodology to go outside of Kerala and into other states in South India.
The visionary leader acknowledged that this partnership necessitates robust team building, content development, technological innovation, and expansion into other categories and hybrid centers. PhysicsWallah is poised to achieve these objectives through the investment in Xylem.
Furthermore, PhysicsWallah aims to explore consolidation opportunities within the southern region. This expansion strategy underscores their commitment to fostering growth and expansion in the edtech sector of South India.
The investment in Xylem Learning comes on the heels of PhysicsWallah’s aggressive investment drive across various business verticals. In May, the edtech unicorn announced its plan to establish 50 Vidyapeeth centers, with a substantial $10 Mn investment in technological innovation. Moreover, PhysicsWallah pledged an INR 100 Cr investment in its UPSC vertical, signaling its dedication to providing comprehensive educational resources.
Additionally, PhysicsWallah unveiled its intention to invest INR 120 Cr over the next two to three years to bolster PW Skills. This investment aims to enhance skill development courses in cutting-edge fields such as AI, machine learning, and data science. The acquisition of iNeuron for over $31 Mn, which focused on skill development, showcased PhysicsWallah’s commitment to staying at the forefront of technological advancements.
The announcement of the partnership with Xylem Learning coincides with PhysicsWallah’s endeavor to raise substantial funds, targeting a range of $250 Mn to $300 Mn at a valuation of $3.5 Bn. This fundraising initiative follows their unicorn status achieved through a $100 Mn investment in June last year.
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PhysicsWallah acquisition of a 50% stake in Xylem Learning serves as a strategic move to consolidate its position in the southern market. By combining their resources and expertise, these two prominent edtech players aim to revolutionize education in South India and empower learners across the region.
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