Indian edtech start-up PhysicsWallah valued at $3.3 billion after $250 million in funding
How PhysicsWallah is Disrupting the Indian Edtech Sector with Potential $250 Million Funding Round
23 March 2023
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Kunal Tyagi
A new funding round of $250 million is reportedly being discussed for the Indian edtech start-up PhysicsWallah, valuing the business at $3.3 billion.
The company, which is already profitable and has experienced significant revenue growth, is looking to raise money primarily to boost its valuation and pursue potential mergers and acquisitions.
Alakh Pandey, the founder of PhysicsWallah, established the business in 2011 with the goal of bringing high-quality education to students from economically underprivileged groups. The business now provides online video lectures and study materials for students getting ready for science and math competitive exams.
A new funding round of $250 million is reportedly being discussed for the Indian edtech start-up PhysicsWallah, valuing the business at $3.3 billion. In comparison to its current valuation of $1.1 billion, this represents a significant increase. Private equity investors are anticipated to take the lead in the round, with participation also anticipated from the company's current shareholders, GSV Ventures and WestBridge Capital.
The company is looking to raise money in order to boost its valuation and pursue potential mergers and acquisitions. The business is already profitable, and it expects to generate over $150 million in revenue in FY23 thanks to significant revenue growth. If PhysicsWallah succeeds in growing its revenue at this rate, it will be the first unicorn edtech company in India to have revenue growth of more than 100%.
The possible fundraising round takes place at a time when the expansion of the Indian edtech industry has slowed down as a result of the reopening of traditional schools and tuition facilities. While investment in India's start-up ecosystem has slowed down dramatically, many edtech unicorns, like Byju's and Unacademy, have been forced to reduce expenses and lay off personnel in order to extend their runway.
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Contrary to the trend, PhysicsWallah reported a 10x increase in operational revenue in FY22 to Rs 232.5 crore and a net profit of about Rs 100 crore. As a result, it is India's sole and biggest profitable edtech start-up. The business has recently introduced a new product, PhysicsWallah Plus, which offers students live, interactive online classes. The company has been using its profits to increase its offerings and market reach. Students have given the platform favorable feedback, and it has helped the business increase sales.
Alakh Pandey, the company's creator, and a former IITian established PhysicsWallah in 2011 with the goal of delivering high-quality instruction to students from economically disadvantaged groups. For students getting ready for science and mathematics competitive examinations, the organization provides online video lectures and study materials.
A key accomplishment for PhysicsWallah and the Indian edtech industry is the prospective investment round. If the fundraising is a success, it will provide the business the ability to broaden its customer base, increase its scope, and perhaps even make strategic acquisitions. Moreover, it would establish PhysicsWallah as a major participant in the Indian edtech sector and pave the way for further expansion.
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