PhysicsWallah is nearing the completion of a $150 million funding round, led by Asian hedge fund Hornbill Orchid, which will value the edtech unicorn at $2.8 billion—more than a 150% increase from its previous valuation. Hornbill Orchid is expected to invest around $70-80 million, while the remaining capital is likely to come from venture capital firm Lightspeed, known for backing edtech rival Byju’s.
This marks the second major funding round for PhysicsWallah, which was launched in 2016 by Alakh Pandey as a YouTube channel offering coaching for engineering and medical entrance exams. The profitable edtech firm previously raised $102 million at a $1.1 billion valuation in 2022 from WestBridge Capital and GSV Ventures.
The new funding round is expected to be one of the largest in the edtech sector after a prolonged slowdown in capital raises. Hornbill Orchid, an India-focused hedge fund, has also invested in listed companies like Angel One and NIIT Ltd.
PhysicsWallah’s latest funding push comes at a time of consolidation in the edtech space, with several smaller companies being acquired by larger players. Recent acquisitions in the sector include Adda247 acquiring Ekagrata Eduserv, Schoolnet buying Genius Teacher, and Allen Career Institute acquiring Doubtnut.
In FY23, PhysicsWallah’s operating revenue tripled to Rs 772 crore, driven by its expansion into offline education, which now accounts for one-third of its total revenue. Despite this growth, the company’s net profit fell to Rs 16 crore from Rs 98 crore in FY22 due to rising employee costs and non-cash expenses.
PhysicsWallah’s inorganic growth, through the acquisition of companies like Xylem Learning, PrepOnline, and Altis Vortex, contributed an additional Rs 500 crore to its consolidated revenue.