Hi Sanjay, the reason lies in solubilities. The active chemical in the titrant is Potassium hydroxide and while extremely soluble in water, it is very insoluble in oil or toluene. For the acid base reaction to take place you need both the acid species present in the oil as well as the KOH to be in the same solution. By having the mix of all three solvents, it makes this possible. The water and IPA easily dissolves the KOH and then in turn, this turns out to miscible with the toluene. The toluene obviously dissolves in the oil. There may be other benefits as well, but I understand this to be the main reason.