Happy Wednesday! Policybazaar’s Yashish Dahiya has warned that proposed commission caps could disrupt the insurance distribution industry. This and more in today’s ETtech Morning Dispatch.Also in the letter:■ PhysicsWallah narrows K-12 play■ Fresh fuel for Agilitas■ Oyo readies market debutCommission caps to pose existential threat to insurance distributors: Policybazaar’s Yashish Dahiya Policybazaar founder and PB Fintech CEO Yashish Dahiya has warned that proposed caps on insurance distributor commissions could severely strain the economics of insurance distribution and inject fresh uncertainty across the industry.New options: In an interview with ET, Dahiya said PB Fintech could explore alternatives such as becoming an insurer itself or operating as a managing general agent if regulatory changes materially hit its core marketplace business model.Thin margins: Dahiya pointed out that insurance distribution is far from a high-margin play. Policybazaar facilitated about Rs 30,000 crore of premiums but generated profits of only around 1% of that figure.Also Read:PB Fintech’s Yashish Dahiya spots new insurance business opening via MGAsTransition risk: The company expects any new commission framework to spark a disruptive transition period for the sector, even as it continues to engage with the regulator on the likely impact of the proposed caps. Also Read:PB Fintech founders Yashish Dahiya, Alok Bansal sell 0.8% stake worth Rs 665 croreIT firms spend big on acquisitions as AI hits growth Indian IT services firms are leaning harder than ever on acquisitions to win clients, enter new markets and sustain growth as AI-driven pricing pressure squeezes traditional, organic expansion.What’s happening? IT companies have spent a record $7.1 billion on acquisitions over the past two years – $5 billion in 2025 and $2.1 billion so far in 2026 – according to UnearthInsight. The shopping spree:Coforge: Acquired Encora for $2.35 billion in December 2025, the largest transaction in this period.TCS: Bought US-based Salesforce specialist Coastal Cloud for $700 million around the same time.Hexaware: Purchased Consulting Professionals Services Holdings (CPS) for about £11 million.Wipro: Acquired Mindsprint for $375 million in 2026.Also Read:India’s tech sector grows with fewer freshers as AI reshapes hiringYes, but: Despite the buying spree, large IT firms had a weak fourth quarter, with revenue either declining or growing only in low single digits as AI-linked pricing pressure dragged on contracts.Analyst take: “These companies may be declining in revenue, but acquisitions will give IT service providers inroads into new verticals and geographies,” said Biswajeet Mahapatra, principal analyst at Forrester. “Because of AI, there are pressures on margins and no organic growth. So growth can happen only if you acquire new customers and position new services.”PhysicsWallah dials down schools push after investor unease PhysicsWallah is trying to settle one of the biggest investor questions around its post-listing story: how deep will India’s only listed edtech company go into K-12 schools? After its Q4 earnings, the company has made it clear that K-12 will not be a capital-heavy bet on owning schools, but an asset-light, online-led funnel to capture younger learners early.What’s happening:PhysicsWallah will not deploy additional capital into schools and will keep the number it operates or manages in single digits, contributing less than 1% of revenue.Cofounder Prateek Maheshwari told us that the K-12 focus will be on school partnerships, state boards, Curious Junior, CUET and online foundation courses.This marks a clear shift from the previous quarter, when the company spoke more aggressively about schools as a large, long-term opportunity. Why it matters:Investors had questioned whether PhysicsWallah was straying too far from its online-first test-prep core.Public markets remain wary of capital-heavy education bets after Educomp’s collapse.The reset also comes amid consolidation across edtech, with the likely merger of UpGrad and Unacademy on the horizon.Also Read: PhysicsWallah to infuse Rs 120 crore in its fintech arm FinZ FinanceNexus, Rainmatter invest Rs 225 crore in Agilitas Sports Abhishek Ganguly, founder, Agilitas SportsAgilitas Sports, founded by former Puma India managing director Abhishek Ganguly, has raised Rs 225 crore from Nexus Venture Partners and Rainmatter as it doubles down on building a broad sportswear platform spanning manufacturing, owned brands and offline retail—instead of a single consumer label.Tell me more:The round includes Rs 200 crore from Nexus Venture Partners and Rs 25 crore from Rainmatter. Nexus had earlier invested Rs 100 crore in 2023.Agilitas acquired Mochiko Shoes in 2023, giving it a sports footwear manufacturing base.Mochiko’s revenue has nearly doubled, from around Rs 650 crore in FY23 to Rs 1,350 crore in FY26.What will the funds be used for?The fresh capital will go into product R&D, design, manufacturing capacity, retail expansion, technology, hiring and brand-building, Ganguly told ET.The funding will also fuel Agilitas’ push to build an integrated sportswear ecosystem spanning Mochiko, Lotto, One8 and Sportsyard.The company launched Lotto in India in July 2025, will unveil Virat Kohli’s co-founded One8 in Delhi on June 21, and plans to open 10 more Sportsyard stores this financial year.Other Top Stories By Our Reporters Ritesh Agarwal, CEO, OyoOyo parent Prism gets Sebi nod for IPO: Hospitality brand Oyo's parent company Prism has secured clearance from Sebi (Securities and Exchange Board of India) for its IPO, through which it plans to raise Rs 6,650 crore in fresh capital, according to sources. ONDC raises Rs 220 crore from Zoho, Uber, Paytm, BSE: The Open Network for Digital Commerce (ONDC) has raised Rs 220 crore from software firm Zoho, mobility platform Uber, fintech major Paytm and BSE Technologies, the technology arm of the stock exchange operator, according to a regulatory filing with the Registrar of Companies (RoC).Skyroot Aerospace forecasts Rs 977 crore in revenues by FY27: Indian space-tech unicorn Skyroot Aerospace has projected sharp revenue growth ahead of its maiden orbital satellite launch of Vikram-1, expected in the coming weeks, according to a KPMG valuation report.Urban Company winds up operations in Saudi Arabia: Home services platform Urban Company has exited Saudi Arabia after the country’s Ministry of Commerce cancelled the commercial registration of its step-down subsidiary, Urban Company Arabia for Information Technologies (UC KSA), effective May 24.Global Picks We Are Reading■ Top AI labs expand research into machine ‘consciousness’ (FT)■ EVs are getting more affordable worldwide — except in the US (Rest of World)■ Flush with cash from OpenAI, Opal is making an AI-powered audio gadget (Wired)