Physics Wallah (PW), India’s leading EdTech company known for revolutionizing how students learn physics, has completed its Series B funding round. In a remarkable achievement, the startup raised $210 million through primary and secondary transactions. The funding round was led by Hornbill Capital, with substantial participation from Lightspeed Venture Partners and existing investors GSV Ventures and Westbridge Capital.
According to the company, this investment brings its post-money valuation to an impressive $2.8 billion, an increase from its previous valuation of $1.1 billion when the Noida-based firm raised $100 million in a Series A funding round in June 2022.
Physics Wallah was founded in 2020 by Pandey and Prateek Maheshwari and offers online and offline courses and study materials for JEE, NEET, and other engineering entrance exams, along with state board exams. The platform also runs divisions focused on skilling, higher education, and study abroad. Its Institute of Innovation (IOI) features 4-year residential programmes emphasizing job readiness. Initially launched as a YouTube channel in 2014, The firm claims to offer free education to over 4.6 crore (46 million) students through its 112+ YouTube channels in five vernacular languages. Its app has been downloaded over 30 million times, with 5.5 million paid students.
Commenting on the latest development, Alakh Pandey, founder and CEO of Physics Wallah, said:
This investment is not just a validation of our efforts to democratize education and make quality education accessible to every student in India, but also a testament to the impact we have created over the years.
The latest round marks one of the most significant primary capital raises in the EdTech segment, signalling renewed investor confidence after a long interval, especially as companies transition back to traditional learning methods while incorporating digital innovations.
Alakh Pandey emphasized that investing in offline education centres has proven pivotal for the startup. Looking ahead, Pandey predicts that FY25 will mark the highest full-year EBITDA for Physics Wallah. He highlighted that revenues increased 2.5 times in FY24, thanks to their targeted investments in offline centres.
Adding further about the investment, Prateek Maheshwari, Co-founder of Physics Wallah, said:
This new round of funding will enable us to expand our reach, enhance our technological capabilities, and continue delivering unparalleled learning experiences. This comes on the back of strong, sustainable year-on-year growth. FY25 is going to be the year of the most considerable absolute profitability for the PW Group.
Dev Khare, Partner at Lightspeed Venture Partners, added:
The community of students built over the years of painstakingly creating quality educational videos and reasonably priced offerings for online and offline courses has made Physics Wallah a familiar brand name across India and all socioeconomic groups.
The company’s operating revenue jumped 234% to Rs 779.3 crore in the financial year ended March 2023 from Rs 223 crore in the previous year. Its net profit, however, declined to Rs 8.9 crore in FY23 from Rs 103.1 crore in the previous fiscal year. While the startup is yet to file its financials with the Registrar of Companies (ROC) for FY24, Maheshwari had said that the company was targeting a Revenue of Rs 2,000 crore for the fiscal year.
Physics Wallah focuses on extending its physical presence and merging with community-based education platforms. This strategy aims to strengthen its market position and develop a more comprehensive educational ecosystem. It also intends to combine new technology with conventional learning methods, ultimately providing users with a more thorough educational experience. As PW evolves and adapts to the ever-changing educational landscape, its innovative thoughts and substantial resources are expected to pave the road for future success.
