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Happy Wednesday! Policybazaar s Yashish Dahiya has warned that proposed commission caps could disrupt the insurance distribution industry. 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 131473835Policybazaar 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. 131473837Thin 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 131473840Indian 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 131473847PhysicsWallah 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