India’s only profitable edtech unicorn PhysicsWallah (PW), on March 20, said it has acquired United Arab Emirates-based Knowledge Planet for an undisclosed amount, marking the former’s first international acquisition.
The company had earlier acquired Indian firms such as online medical entrance tests coaching platform PrepOnline and exam preparation books publisher Altis Vortex, doubt-solving and resource management startup FreeCo, and upskilling startup iNeuron.ai.
In a statement, PW said while it will leverage Knowledge Planet’s school partnership machinery to reach students in UAE, Knowledge Planet will benefit from PW’s tech stack to strengthen its online and hybrid offerings.
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PW added it will offer SAT (Scholastic Aptitude Test) preparation courses for students looking to move abroad for higher education, in the Middle East.
The company also believes the acquisition will add a $250 million market of offline test prep for the Joint Entrance Examination (JEE) and National Eligibility cum Entrance Test (NEET) for the region’s Indian diaspora.
“We are elated to announce our very first international acquisition in the UAE. With 13 centers operating across the Middle East and a well-established school partnership model, Knowledge Planet, the most trusted exam preparation network, is the perfect brand to champion our foray into this promising market. This is a critical milestone in PW’s journey and we are excited to welcome students from this region into the PW family,” said Alakh Pandey, chief executive officer (CEO) and founder of PhysicsWallah.
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Founded in 2011 by Monika Oli and Sachin Bharti Gupta, Knowledge Planet provides test preparation and training for major competitive exams such as JEE and NEET.
With Knowledge Planet’s partnership model, PW said it will be able to expand the reach of its existing batch offerings. PW also said it is looking expand offline beyond the Middle East, to countries like Egypt and Turkey.
“We are well-aligned with Alakh Pandey’s vision to offer high-quality education at scale in the Middle East. Our combined expertise will be able to add immense value to the test prep segment in UAE,” said Gupta, who is also the CEO of Knowledge Planet.
Moneycontrol earlier reported that PhysicsWallah has recorded strong growth in its FY22 (2021-22) profit as the company’s revenue soared nearly 10 times during the period.
The GSV Ventures-backed unicorn reported a net profit of Rs 97.8 crore for FY22, up nearly 14 times from its FY21 profit of Rs 6.93 crore, the document showed. Its revenue from operations grew nearly 10-fold during the period to Rs 232.5 crore from Rs 24.6 crore in FY21, according to the document. PhysicsWallah reported total revenue of Rs 234.1 crore for the year ended March 2022 on a standalone basis.
During FY22, PhysicsWallah’s total expenses grew seven times to Rs 103.2 crore, thanks to a 21-fold rise in its employee benefit costs to Rs 42.18 crore.
PhyiscsWallah started operations in June 2020 and FY22 was the first full year of operations for the company. The company had raised $100 million earlier this year from GSV Ventures and WestBridge Capital at a valuation of $1.1 billion.
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