Physics Wallah partners with edtech Xylem, to invest ₹500 crore in 3 years

Edtech firm Physics Wallah has announced a strategic collaboration with Kerala-based edtech company Xylem Learning, according to a report by CNBC-TV18. As part of this partnership, Physics Wallah intends to invest ₹500 crore over the next three years to expand its presence in the southern market.

Alakh Pandey, the Founder and CEO of Physics Wallah emphasized that this partnership aligns with their shared vision of delivering quality education to all and brings them closer to their strategic goal of becoming the leading education platform in South India. The collaboration will involve strategic equity and cash investments in Xylem, as well as the expansion of its operations.

Also Read: Physics Wallah to infuse ₹100 cr in its UPSC vertical, to open 10 offline centres

Pandey further revealed their plan to invest ₹500 crore over three years to promote Xylem's unique "XYLEM model of Hybrid Learning" in the neighbouring states, which will require team building, content development, technological innovation, expansion into other categories, and the establishment of hybrid centres. Physics Wallah also plans to explore merger and acquisition opportunities in the southern region.

Founded by 26-year-old MBBS graduate Ananthu S, Xylem Learning currently holds a strong presence in the Kerala market. Its future expansion targets include Tamil Nadu, Andhra Pradesh, and other southern markets. Presently, Xylem provides free classes to over 3 million students through its 30 YouTube channels. 

It also has more than 1 lakh paid students enrolled in various online courses and 30,000 students attending its offline or hybrid centres in five prime districts of Kerala. In addition, they operate 10 tuition centres and a school-integrated programme across seven schools. Xylem has recently ventured into commerce and Kerala PSC test preparation and plans to continue expanding into other educational categories.

The collaboration between Physics Wallah and Xylem Learning will leverage the exchange of technology and knowledge to enhance the learning experience for JEE and NEET aspirants in South India. 

Ananthu emphasised that the partnership is driven by principles of affordability, trust, and the democratisation of education. He stated their target is to achieve ₹300 crore in revenue with a 25 percent EBITDA margin in FY24, an increase from ₹150 crore in FY23. Ananthu expressed alignment with Alakh Pandey's vision, as both organisations are dedicated to making quality education accessible and affordable for students.