Physics Wallah to invest Rs 500 crore in Kerala's Xylem Learning for 50 percent stake

Indian test preparation company Physics Wallah announced on June 18, 2023 that it would invest Rs 500 crore in Kerala-based Xylem Learning over three years, acquiring a 50 percent stake in phases. The deal combined strategic equity and cash investment with support for scaling up Xylem's operations. Physics Wallah was described in the report as a unicorn edtech firm, and founder Alakh Pandey said the deal was meant to strengthen its presence in the southern market.

Xylem was founded by Ananthu S, a 26-year-old medical graduate, and focuses on hybrid learning. According to the report, it reached more than 3 million learners for free through 30 YouTube channels, had more than 100,000 paid learners in its online courses, and taught about 30,000 students in offline and hybrid centers across five Kerala districts. It also ran 10 tuition centers and a school-integrated program in seven schools, and covered commerce and Kerala Public Service Commission exam preparation.

The capital was intended to take Xylem's hybrid model into neighboring states, starting with Tamil Nadu and Andhra Pradesh, and to fund team building, content, technology, new exam categories and additional hybrid centers. Pandey also said the company would look at mergers and acquisitions in the South. According to the report, Xylem targeted revenue of Rs 300 crore with a 25 percent EBITDA margin in fiscal 2024, up from Rs 150 crore in fiscal 2023.

For Physics Wallah, led by founder and chief executive Alakh Pandey, the investment was framed as a step toward becoming a leading education platform in South India, with a focus on students preparing for the JEE engineering and NEET medical entrance exams. Xylem founder Ananthu S said the partnership rested on affordability, trust and wider access to education. The report, based on PTI, said the deal was announced on a Sunday, June 18, and expansion was planned for Tamil Nadu, Andhra Pradesh and other southern markets.