Edtech unicorn PhysicsWallah has invested Rs 500 crore in Xylem Learning, a Kerala-based competitive exam coaching company, to expand the company's footprint in southern India.
Noida-based PhysicsWallah will invest the amount over three years. The Rs 500 crore deal is a combination of cash and equity, but the company didn't disclose the stake it has acquired in Xylem.
The company will look at further mergers and acquisitions in the south, said Alakh Pandey, chief executive officer and founder of PhysicsWallah, in a statement.
Xylem's founder and CEO, Ananthu S., will lead PhysicsWallah's southern expansion.
"Xylem Learning brings deep experience and a strong presence to the Kerala market ... and will now expand to Tamil Nadu, Andhra Pradesh, and other southern markets," PhysicsWallah said in its statement.
Xylem Learning, through its YouTube channel, provides free classes for NEET and JEE preparation and has one lakh paying students across offline and online courses. It also offers coaching for commerce-based competitive exams. With the investment, Ananthu S said that Xylem will aim to touch Rs 300 crore in revenue for FY24, up from Rs 150 crore in the previous fiscal.
While it isn't clear whether Xylem is an acquisition, the Alakh Pandey-led company has been on a buying spree. In the last 12 months, it acquired the U.A.E.-based K-12 online and offline learning startup Knowledge Planet, as well as iNeuron, Altis Vortex, PrepOnline, and FreeCo.
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