Despite the prolonged “funding winter” in the edtech sector, PhysicsWallah (PW) is on the verge of securing a significant new funding round. This fresh infusion of capital will be led by new investors, with existing backers Westbridge and GSV Ventures also participating, according to sources familiar with the matter. The terms of the deal have been finalized, and the transaction is expected to be announced soon.
This upcoming round will mark the second major fundraising effort for the company, led by Alakh Pandey, within the last two years. PhysicsWallah previously raised $100 million in a Series A round in June 2022, spearheaded by Westbridge and GSV Ventures. The new funding round will value PhysicsWallah at approximately $2.8 billion, representing a more than 2.5-fold increase from its Series A valuation of $1.1 billion.
According to data, Westbridge held a 2.4% stake in PhysicsWallah, while GSV owned 1.44% as of the Series A round. Co-founders Alakh Pandey and Prateek Maheshwari together hold 86.54% of the company. PhysicsWallah, which initially focused on online coaching for IIT/JEE exams, has expanded into a comprehensive education provider, offering offline coaching, schools, colleges, and upskilling programs. Around 30% of its revenue comes from JEE and NEET coaching, with offline coaching (via Vidyapeeth and Pathshala) contributing 35%.
Although the company has yet to release its FY24 figures, PhysicsWallah’s revenue surged 3.3 times to Rs 779 crore in FY23. However, its profit declined by over 90% to Rs 8.87 crore in the same period. In November of last year, the company laid off 120-150 employees as a cost-cutting measure.
The anticipated funding underscores strong investor confidence in PhysicsWallah’s long-term potential. The company’s loyalty and credibility with the student community have set it apart from other edtech competitors. This new funding round will provide PhysicsWallah not only with the necessary time but also the resources to scale up more cost-effectively, given the weakened state of the competition.
