In talks of acquiring Drishti IAS For ₹2500 – 3000 crore. Making it in edtech one of the large trade in, in India. PW in talk to acquire Drishti IAS.
If it’s will final pact confirm, then Physics wallah remains a competitor add UPSC to PWs JEE/NEET. Though the Physics wallah already in this area as known in the name of OnlyIAS.
The CEO of Drishti IAS Vivek Tiwari however, has dismissed these provide report as mere speculation.
BYJUS TEXTBOOK etc in this major shares in market in edtech So it may not speculate that kill competition PW in talk to acquire Drishti IAS.
Physics wallah, the firm Noida based had reported a net profit in FY2023 of 16 crore. But its financials to report a net loss of ₹84 crore of FYear 2023 to 1130 crore of FY2024.
In Financial Year 2023 the total net revenue of the PW was ₹744 crore. And in financial year of 2024 it boost with double revenue added to its total revenue. The financial year 2024 the net total revenue ₹ 1940 crore.
Drishti IAS in financial year 2024 the institute report ₹405 crore added its revenue. In this FY24 Drishti IAS made ₹90 crore in profit.
Founder and start-up of edtech PW and Drishti IAS
Physics wallah also known as the PW it is an edtech start-up firm in sectors of JEER/NEET. The firm started it’s journey from a Youtube channel in 2016 name Physics walla by Alakh pandey.
The PW firm functions in online and offline to provide it’s platform to teach in, medical and engineering preparation to aspirant. It provide and expanded it’s area in providing study material, test series, interview mock, etc.
Drishti IAS is also a offline and online coching institute which majority it’s expansion in UPSC aspirant preparation. But now its also try to set its foot on other competitive preparation such as Judiciary.
Vikas Svikriti founder of Drishti IAS in 1999, he is former IAS office of batch 1996 All India Rank (AIR) of 384.
Physics wallah its First IPO news
Recently company appointed independent directors in preparation for its IPO. With this PW plan to raise $ 500 million at $ 5 billion valuation.
In indian Rupees it 500 crore valuation. By raising this amount through IPO the Company ambition to reach the key player in global edtech market.
Competition in edtech market, PW in talk to acquire Drishti IAS
The news in talk that the PW is willing to acquire Drishti IAS, but ceo of Drishti IAS denies it just it just a speculation.
There many firm such as BYJUS, AKASH, TEXTBOOK, UNACADEMY etc, are in this providing service, have major shares in market in edtech. So it may not be speculate that it may be killing competition after acquiring Drishti IAS. But if it continues to doing it so, than it may presumption it as killing competition and competitor.
To understanding of this we have to first understand what is Competition, how it affect market, acquisition and along with this company law. What is ipo, appointment of independent director etc.
What is Competition?
The competition definition not defined in competition Act 2002, it may be understood by following silent features of section 3 and 4 of this act.
- Anti competitive agreement restrictive
- Price fixing
- Market division/allocation
- Area decided not may monopoly.
- Output limitations
- Supply stopped to increase price.
- Bid ragging
- Trying and binding
- Binding of one thing to other in selling to purchaser.
- Abuse of dominant position,
- Directly or indirectly.
The above Clause is to prevent market and consumer scope of diversity to purchase, so that sustainable development and market competition increase and consumer profit to this.
This law is also known as Antitrust Law, it’s aim and object is to stop and prevent anti competition in market. Means to prevent cartels, monopolies in the market to protect consumer. Competition law to sustain market competition and conduct of business.
Company law and competition law, education right,i impact on basic concept of education against economic corporate, current, and goal, achievement of both private and government initiative and efforts.
Initial Public Offering (IPO)
IPO, the full form is Initial Public Offering, IPO is process to raise equity capital (ownership stake) which helps raise capital for its growth. In this IPO private companies in sell of their shares to the public. These private companies intending to raise equity capital. Which help them to grow.
What is edtech in tuition, coaching? PW in talk to acquire Drishti IAS
Etech by its name it clearly want to state that the education in which the technology is included to teach. Such as computer devices and other communication smart gadget to teach students. In this both traditional and modern technology included to lecture and other practice of study.
Appointment of Independent director
- Independent director
- There should be an independence director in every companies, according to section 149(4).
- Independence directors play an important role in maintaining a transparent working environment in the corporate regime.
- They are expected to have impartial and unbiased objective judgement for the proper functioning of the company.
Functions of Independent director
- To scrutiny the performance of the management.
- To balance the conflicting interest of all stakeholders.
- To moderate and arbitrate in the interest of the company.
Article 38 & 39 constitution base of Competition Act
The constitution Article 38 says that State to secure a social order for the promotion of welfare of the people.
Article 39 says that Certain principles of policy to be followed by the State,
- Every individual equally, have the right to an adequate means of livelihood.
- Ownership and control of the material resources of the community are so distributed as best to subserve the common good.
- Operation of the economic system does not result in the concentration of wealth and means of production to the common detriment.