15. December 2025
Edtech Giants Ditch Screens For Brick-And-Mortar Hubs
The edtech sector in India is undergoing a significant transformation, as leading players are shifting their focus from digital to offline operations. After years of disrupting the education landscape with online platforms and AI-powered tools, these companies are now investing heavily in physical learning centers to rebuild trust, improve outcomes, and achieve sustainable unit economics.
PhysicsWallah (PW), a popular edtech platform, is one of the pioneers in this shift. The company has been primarily digital since its inception but is now preparing to make a significant foray into the offline space with an initial public offering (IPO) worth ₹3,480 crore. This IPO will provide PW with the necessary funding to expand its physical presence and enable it to acquire other edtech companies.
PW’s offline expansion plans are part of a broader strategy to rebuild trust with students and parents, who have been increasingly wary of online learning platforms due to concerns over quality, accessibility, and accountability. By establishing physical centers in tier-II and tier-III cities, PW aims to provide students with a more personalized and immersive learning experience that is not possible online.
Unacademy, another prominent edtech player, is reportedly in talks for a $300–400 million merger with UpGrad. This proposed merger would create one of the largest edtech companies in India, with a combined market value of over ₹50,000 crore. The deal signals large-scale consolidation in the edtech sector, as both companies seek to deepen their offline footprints and improve their competitive position.
The edtech sector’s shift towards offline operations is also driven by regulatory requirements. The Indian government has been increasingly cracking down on online education platforms that fail to meet certain standards of quality and accountability. By investing in physical centers, edtech companies can demonstrate compliance with these regulations and build trust with students and parents.
Moreover, the offline shift in the edtech sector reflects changing consumer behavior. With the rise of digital literacy, more students are seeking personalized and immersive learning experiences that are not possible online. Physical learning centers offer a more engaging and interactive way to learn, which is particularly beneficial for students who require additional support or have special needs.
The offline shift also has significant implications for AI usage. As companies invest more in physical operations, they will need to develop new AI-powered tools that can optimize their offline processes and improve student outcomes. This could include AI-driven personalized learning platforms, adaptive assessment tools, and virtual reality-based learning experiences.
However, the use of AI in offline education also raises concerns about data protection and privacy. Companies must ensure that this data is stored securely and used responsibly. Implementing robust data encryption protocols, ensuring transparency around data collection and usage, and providing students with control over their own data are essential to addressing these concerns.
The impact of the edtech sector’s shift towards offline operations will also be felt in the job market. As companies invest more in physical centers, they will need to create new jobs for teachers, administrators, and support staff. This could provide a boost to local economies and help address skills shortages in the education sector.
As the edtech sector continues its transformation, it is essential to prioritize responsible AI usage that balances innovation with accountability. Companies must invest in developing AI-powered tools that improve student outcomes while ensuring data protection and privacy. The future of education will depend on the ability of companies to adapt to changing consumer behavior, regulatory requirements, and technological advancements.
The edtech sector’s offline shift also highlights the need for more personalized and immersive learning experiences. Physical learning centers offer a unique opportunity for students to engage with teachers and peers in a more meaningful way, which can lead to improved outcomes and increased student satisfaction. By leveraging AI-powered tools and physical operations, companies can create a more comprehensive and inclusive education system that meets the diverse needs of students.
The role of AI in this shift is multifaceted, with significant potential for improving student outcomes and optimizing offline processes. As companies move forward with their offline expansion plans, they must prioritize responsible AI usage that balances innovation with accountability. The future of edtech will depend on its ability to harness the power of technology to improve education while addressing concerns about data protection and privacy.
The Indian government has been increasingly cracking down on online education platforms that fail to meet certain standards of quality and accountability. By investing in physical centers, edtech companies can demonstrate compliance with these regulations and build trust with students and parents.
The offline shift also reflects changing consumer behavior, as more students seek personalized and immersive learning experiences that are not possible online. Physical learning centers offer a more engaging and interactive way to learn, which is particularly beneficial for students who require additional support or have special needs.
Moreover, the use of AI in offline education has significant potential. For instance, AI-powered chatbots can be used to provide support and guidance to students, while AI-driven analytics can help teachers identify areas where students need additional support. AI-powered virtual reality platforms can also create immersive and interactive learning experiences that are not possible online.
The edtech sector’s shift towards offline operations is a significant development that reflects changing consumer behavior, regulatory requirements, and the need for personalized and immersive learning experiences. As companies invest more in physical centers, they will need to develop new AI-powered tools that can optimize their offline processes and improve student outcomes. The implications of this shift will be felt across the education sector, including the job market.
The role of AI in this shift is multifaceted, with significant potential for improving student outcomes and optimizing offline processes. However, it also raises concerns about data protection and privacy. Companies must prioritize responsible AI usage that balances innovation with accountability.
As companies move forward with their offline expansion plans, they will need to develop new AI-powered tools that can improve student outcomes while ensuring data protection and privacy. The future of education will depend on the ability of companies to adapt to changing consumer behavior, regulatory requirements, and technological advancements.
The edtech sector’s offline shift highlights the need for more personalized and immersive learning experiences. Physical learning centers offer a unique opportunity for students to engage with teachers and peers in a more meaningful way, which can lead to improved outcomes and increased student satisfaction.
By leveraging AI-powered tools and physical operations, companies can create a more comprehensive and inclusive education system that meets the diverse needs of students. The role of AI in this shift is multifaceted, with significant potential for improving student outcomes and optimizing offline processes.
However, it also raises concerns about data protection and privacy. Companies must prioritize responsible AI usage that balances innovation with accountability.