Physics Wallah (PW), the edtech unicorn led by Alakh Pandey, has raised $210 million in a Series B funds round, raising its valuation to $2.8 billion, more than double the $1.1 billion it raised in its previous Series A round.
Hornbill Capital led the funding, which was raised through a combination of primary and secondary transactions. Lightspeed Venture Partners, GSV and WestBridge also participated.
Focused on scaling operations
The education technology giant will use the capital raised to scale operations, focusing on consolidating the education market.
The startup also plans to pursue inorganic expansion, enter the K-12 formal education segment, enhance its content and publishing offerings, and explore mergers with community-driven education platforms across categories.
“This investment is not just a validation of our efforts to democratize education and make quality education accessible to all students in India, but also a testament to the impact we have created over the years. Prateek and I are excited to partner with Hornbill Capital and Lightspeed Venture Partners on this journey, and deeply appreciate the continued trust of WestBridge and GSV,” said co-founder Alakh Pandey.
In June 2022, PhysicsWallah joined the unicorn startup club after raising $100 million in Series A funding from Westbridge and GSV Ventures.
PW’s presence in the market
Founded by Alakh Pandey and Prateek Maheshwari in 2020, PhysicsWallah initially started as a YouTube channel in 2016, offering free education to students preparing for competitive exams.
The platform now offers online and offline courses and study materials for students preparing for exams like JEE, NEET and various state board exams. It has grown rapidly and has over 46 million students across multiple channels and languages.
The company’s mobile app has been downloaded more than 30 million times and has 5.5 million paying students.
It is worth noting that it currently has 1,900 employees, including 500 teachers and 90 to 100 technology experts. It also has 200 associate professors available to answer student queries and another 200 professionals to create exam questions and final projects.
“We have always focused on creating value for our students and ensuring their success. This new round of funding will enable us to expand our reach, enhance our technological capabilities and continue to deliver unparalleled learning experiences,” said Prateek Maheshwari, Co-Founder, Physics Wallah.
Growth and revenue milestones
PhysicsWallah has seen impressive growth over the past few years. In FY2023, the company reported a 3.3x increase in revenue, reaching Rs 779 crore.
Despite this revenue surge, its net profit suffered a sharp decline, falling over 90% to Rs 8.87 crore. The company attributed this fall to rising employee costs and increased spending on growth initiatives.
Maheshwari acknowledged the decline but remains optimistic about the future and projects significant growth in FY25.
“This is on the back of strong and sustainable year-on-year growth; in fact, FY2025 will be the most profitable year ever in terms of absolute EBIDTA for the PW Group. There are no good or bad markets, only good or bad stories, and ours is a high-impact story!” Maheshwari added.
Investor Comments
Speaking about Hornbill’s investment in PW, Manoj Thakur, Founder of Hornbill Capital and based in Dubai, said, “Physics Wallah is a rare combination of vision, execution and impact with a thriving 3C model – content, community and commerce. We are excited to see PW using AI to not only help improve student outcomes but also their emotional well-being. We are delighted to lead this investment round and support PW in its mission to deliver quality education at affordable prices through the use of cutting-edge technology.”
Sandeep Singhal, Co-Founder and Managing Partner, WestBridge, shared his enthusiasm: “Our decision to bet on Physics Wallah is driven by the company’s exceptional growth, strong execution and long-term vision. We believe in Alakh and Prateek’s leadership and their ability to solve one of India’s toughest problems, which is to deliver world-class education at a very low cost and at population scale. In that sense, PW is probably one of the most socially impactful companies I have seen.”
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