PhysicsWallah and Drishti IAS: A Game-Changing Acquisition in the Indian EdTech Space?
The Indian EdTech sector is buzzing with the news of a potential mega-acquisition: PhysicsWallah (PW), a leading EdTech unicorn, is reportedly in talks to acquire Drishti IAS, a well-known coaching institute for civil services exams, for a staggering Rs 2,500 crore. This move, if it materializes, could redefine the competitive landscape of online and offline coaching in India. PhysicsWallah: Riding the Wave of Affordable Education Founded by Alakh Pandey, PW has become a household name for students aspiring to crack engineering and medical entrance exams like JEE and NEET. Their success lies in providing high-quality online coaching at affordable prices, reaching students from diverse backgrounds. PW’s innovative marketing strategies, leveraging social media and the personal brand of its founder, have further fueled its rapid growth. While PW has seen impressive revenue growth, reaching approximately Rs 1,940 – 2,015 crore in FY24, the company has also reported significant losses. This makes the potential acquisition of a profitable entity like Drishti IAS all the more interesting. Drishti IAS: A Stronghold in Civil Services Coaching Established in 1999 by Dr. Vikas Divyakirti, Drishti IAS has carved a niche for itself in coaching students for the prestigious UPSC and state civil services examinations. Known for its quality offline coaching, particularly for Hindi medium students, Drishti IAS boasts a strong reputation and a significant presence in key educational hubs like Mukherjee Nagar, Delhi. In FY24, Drishti IAS reported a healthy revenue of Rs 405 crore and a profit after tax of around Rs 90 crore. Why This Acquisition Makes Strategic Sense The potential acquisition of Drishti IAS by PW is a strategic masterstroke with several compelling reasons: What’s in it for Drishti IAS? Being acquired by a tech-forward EdTech unicorn like PW could also benefit Drishti IAS by providing: Financial Implications and Expert Views The reported valuation of Rs 2,500 crore for Drishti IAS, while seemingly high at 6.17 times its revenue and 27.78 times its profit in FY24, could be justified by its profitability, strong brand, and market leadership in the UPSC coaching segment. Industry experts believe this acquisition would significantly strengthen PW’s position in the EdTech market and align with the ongoing trend of consolidation. It also reflects the increasing importance of offline coaching in a post-pandemic world . Challenges and the Road Ahead While the potential acquisition holds immense promise, successful integration of the two organizations and maintaining the quality of education across different platforms will be crucial. PW, despite its revenue growth, needs to focus on achieving sustainable profitability, and Drishti IAS’s profitable model could be a key asset in this endeavor. Conclusion The potential acquisition of Drishti IAS by PhysicsWallah is a significant development in the Indian EdTech space. It represents a strategic move by PW to diversify its offerings, strengthen its offline presence, and tap into the lucrative UPSC coaching market ahead of its IPO. While the deal is yet to be officially confirmed, its potential impact on the future of competitive exam preparation in India is undeniable.
Zomato’s Rebranding to Eternal Ltd: A Strategic Shift
In a noteworthy move within the Indian tech landscape, Zomato, the popular food delivery platform, has announced a significant corporate restructuring. Its parent company, Zomato Ltd., has been renamed Eternal Ltd., sparking discussions across the industry and among its vast user base. This blog post delves into the reasons behind this rebranding, the structural changes it entails, and the reactions it has garnered. Why the Name Change? A Look at Zomato’s Diversified Strategy The primary driver behind Zomato’s transformation to Eternal Ltd. is its strategic evolution beyond its core food delivery services. Over the years, Zomato has strategically expanded its operations to include several key verticals: The new corporate name, Eternal Ltd., is designed to better represent these broader tech-driven ambitions, signaling a shift from a singular focus on food delivery to a more diversified technology and e-commerce conglomerate. It’s important to note that the widely recognized Zomato app and its food delivery service will continue to operate under the established Zomato brand name. According to Zomato’s CEO, Deepinder Goyal, the acquisition of Blinkit was a pivotal moment that prompted this rebranding. Internally, the name “Eternal” was already being used to distinguish between the overarching corporate entity and the Blinkit brand. Goyal stated that the public renaming was strategically timed to coincide with the growing significance of businesses beyond the core Zomato food delivery service. He emphasized that with Blinkit becoming a substantial growth driver, it was the right time to formally acknowledge this broader scope with a new corporate identity. Furthermore, Goyal views the name “Eternal” as a “mission statement” and a constant reminder of the company’s ambition for enduring success. The renaming also serves to clearly differentiate the parent holding company, Eternal Ltd., from its well-known consumer-facing brand, Zomato, and its other subsidiaries. This separation is a common practice for large corporations with diverse business interests, allowing individual brands to maintain their distinct identities and target audiences while the parent company focuses on overall strategy and governance. What Does Eternal Ltd. Encompass? A New Corporate Structure The renaming to Eternal Ltd. marks the formal establishment of a new corporate structure overseeing a diverse portfolio of business verticals. Eternal Ltd. now acts as the parent company for four primary business segments: This structural change highlights Zomato’s strategic shift from being primarily known as a food delivery company to a more diversified technology-driven enterprise. The Timeline of Transformation: From Approval to Implementation The transition to Eternal Ltd. followed a structured timeline involving key corporate governance procedures. Zomato’s board of directors initially approved the corporate name change on February 6, 2025. This decision then went to the shareholders for their approval. Shareholders overwhelmingly supported the renaming to Eternal Ltd., with over 99% voting in favor . The scrutiniser’s report detailing the voting outcome was published on March 9, 2025. The official announcement of the rebranding was made around February 7, 2025, by CEO Deepinder Goyal. As part of this transition, Zomato plans to update its corporate online presence, with the website moving from zomato.com to eternal.com. The company’s stock ticker on the exchanges will also change from ZOMATO to ETERNAL . Public Reaction: A Mix of Surprise and Humor The public and social media response to Zomato’s rebranding as Eternal Ltd. has been varied. Many users expressed nostalgia for the original “Zomato” name. Concerns were also raised about the new name’s relevance to the company’s core food delivery business. Some users humorously compared the name to companies involved in longevity research. Initially, there was some confusion about whether the Zomato app itself would be renamed . Zomato clarified that the app and food delivery service would retain the “Zomato” branding . The announcement also led to humorous reactions and memes on social media. Despite the initial skepticism, some users viewed the move positively, seeing it as bold and aligned with the company’s broader growth strategy. Some even suggested developing a unified “super-app” under the “Eternal” umbrella. Media Coverage: Understanding the Strategic Shift The rebranding of Zomato Ltd. to Eternal Ltd. received widespread coverage across major business and news outlets . Most reports focused on the strategic rationale behind the renaming, highlighting Zomato’s expansion beyond food delivery . Media coverage also addressed public reactions and clarified that the Zomato app would remain unchanged . Looking Ahead: What Does This Mean for the Future? The renaming of Zomato Ltd. to Eternal Ltd. signifies a strategic evolution, aiming to position the company as a diversified technology conglomerate . This move reflects a focus on long-term growth and expansion into sectors like quick commerce and B2B supply . While the strategic rationale is clear, effective communication will be crucial to ensure continued public engagement with its various brands, especially the core Zomato food delivery service. The success of this rebranding will depend on the performance of its newer business verticals and their contribution to the overall growth of Eternal Ltd.