
Allen Expands Footprint in Tier-2 Cities Amid Evolution of Coaching Model

PhysicsWallah Limited
IPOAllen Career Institute Expands into Tier 2 and 3 Cities Amid Changing Student Migration Patterns
Allen Career Institute, a test-preparation firm backed by Bodhi Tree Systems, is aggressively expanding into tier 2 and 3 cities as the test-preparation industry rethinks its dependence on Kota, India's traditional coaching hub. This move comes at a time when coaching institutes in Kota are facing increased competition from hybrid and decentralized learning models, with students preferring to study closer to home.
The expansion into smaller cities, including Agra, Gorakhpur, Gaya, Darbhanga, Bhilai, Kolhapur, Visakhapatnam, and Vijayawada, is part of Allen's strategy to position itself as a scaled national education platform ahead of a potential market debut. The company's footprint has expanded from 43 cities in FY22 to 78 cities in 21 states and union territories by FY26.
Founded in Kota in 1988 by Rajesh Maheshwari with eight students, Allen is leveraging its scale as a competitive advantage. The company claims that one in every four students admitted to the Indian Institutes of Technology (IITs) and All India Institute of Medical Sciences (AIIMS) nationwide has been trained at the institute over the last two academic cycles.
Allen is also differentiating itself on governance and disclosure standards in the sector, which has historically relied on self-reported academic performance metrics. The company is the only coaching institution in India to offer subject its academic results for verification by Ernst & Young (EY), with an audit framework that includes verification of attendance records, enrolment dates, fee receipts, and student confirmations.
In addition to physical expansion, Allen is integrating AI-driven learning systems into its teaching framework, including adaptive assessments, customized mock tests, performance tracking, and round-the-clock doubt resolution systems. This strategy reflects a broader shift in India's test-preparation industry, where large coaching brands are increasingly taking the "Kota model" into smaller cities rather than relying solely on students relocating to coaching hubs.
Key Statistics
| Year | Number of Cities | Expansion |
|---|---|---|
| FY22 | 43 | - |
| FY26 | 78 | 35 (80.5% increase) |
Read also: SMR Jewels IPO Successfully Lists with Institutional Support
Note: The expansion statistics are based on the number of cities in which Allen Career Institute operates.
Investor Takeaway
Investors should consider the growing demand for localized edtech options and the potential for Allen Career Institute to capitalize on this trend.
More in IPO

SpaceX Seeks Record $75 Billion IPO, Potentially Positioning Elon Musk as the World's First Trillionaire

SMR Jewels IPO Successfully Lists with Institutional Support

Zepto Nears $1 Billion Quarterly Net Order Value Milestone Before IPO
