Physics Wallah (PW), an educational technology startup, has completed its Series B funding round, raising $210 million. This investment raises the company's post-money valuation to $2.8 billion, a 2.5x increase from its previous valuation of $1.1 billion. Hornbill Capital led the investment round, with significant participation from Lightspeed Venture Partners and ongoing support from its current investors, GSV and WestBridge.
Physics Wallah claimed that the fundraising round demonstrates optimism in the face of hard circumstances for the edtech sector and displays the trust of both existing and new investors in PW's future growth.
"This investment is not only a validation of our efforts to democratize education and make quality education available to every student in India, but it is also a testament to the impact we have made over the years," said Alakh Pandey, Physics Wallah's founder and CEO.
Prateek Maheshwari, co-founder of Physics Wallah, stated that the new amount of investment will allow the company to broaden its reach, increase its technology capabilities, and improve the delivery of learning experiences. "This follows years of robust, consistent development. In fact, FY25 will be the year with the highest absolute profitability for the PW Group. There are no good or terrible markets; just excellent or bad stories—and ours is a fantastic impact narrative," Maheshwari said.
Physics Wallah creates 9,500 hours of instructional content every week for a student population of 18,808 pin codes, which accounts for over 98% of all pin codes in India. This money will supplement its already sizable financial reserves to support future expansion goals. PW's shift from classroom education to skilling is central to its strategic strategy, which aims to serve students at every point of their journey.
The money collected will be used strategically to expand operations, with a particular emphasis on consolidation in the education industry.
Physics Wallah's chief strategy officer, Abhishek Mishra, stated that the company intends to seek inorganic growth, join the K-12 formal education area, expand its content and publication capabilities, and consider mergers with community-driven education platforms across categories.
"We are very excited to welcome partners who share our values and principles and are aligned with our vision of creating societal impact at scale through quality education," Mishra told the crowd.
Regarding Hornbill's stake in PW, Dubai-based According to Manoj Thakur, founder of Hornbill Capital, Physics Wallah is a unique blend of vision, execution, and effect, with a thriving 3C model (Content, Community, and Commerce). "We are excited to see PW's use of AI not only to help improve students' outcomes but also their emotional well-being," Thakur stated.
According to Dev Khare, partner at Lightspeed Venture Partners, Physics Wallah's student community has grown over years of painstakingly creating quality educational videos, as well as reasonably priced offerings for online and offline courses, making Physics Wallah a familiar brand name across India and all socioeconomic groups.
Sandeep Singhal, co-founder and managing partner at WestBridge, stated that the decision to double focus on Physics Wallah is motivated by the company's growth, great execution, and long-term strategy. "We believe in the leadership of Alakh (Pandey) and Prateek (Maheshwari) and their ability to solve one of India's biggest challenges, which is to provide world-class education at a low cost and at population scale," Singhal told the media.
Deborah Quazzo, managing partner at GSV Ventures, described Physics Wallah's influence on students across Bharat as tremendously motivating. "Our investment in PW, the largest commitment we've made to date, reflects our strong belief in the company's commitment to quality and accessibility," Quazzo told me.
While the firm has yet to release FY24 figures, Physics Wallah's sales increased 3.3 times to Rs 779 crore in FY23. However, the company's earnings fell more than 90% to Rs 8.87 crore in FY23, according to Entrackr.
The edtech unicorn is expected to report more than Rs 2,000 crore in revenue in the current fiscal year (FY24).
According to statistics provided by The Kredible, edtech firms raised just $138 million in 21 agreements in the first half of 2024, a significant drop from $456 million in 2023, $2.3 billion in 2022, and $5.8 billion in 2021.
