With the help of Lightspeed Venture Partners, GSV, WestBridge, and Hornbill Capital, Edtech startup Physics Wallah (PW) has raised $210 million in a Series B funding round.
The Noida-based company previously raised $100 million in Series A funding at a valuation of $1.1 billion; with this investment, it has increased that valuation by 2.5X to $2.8 billion post-money.
The company stated in a press release that the money will be used to scale operations, with an emphasis on uniting the education sector. Moreover, it seeks to grow inorganically, break into the K–12 market, improve its content offerings, and possibly merge with community-driven educational platforms.
“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,” said Alakh Pandey, founder and CEO of Physics Wallah.
Physics Wallah was established in 2020 by Pandey and Prateek Maheshwari. It provides state board examinations, online and offline courses, and study guides for the JEE, NEET, and other engineering entrance exams. The business also has departments dedicated to study abroad, higher education, and skill development. The 4-year residential programs offered by its Institute of Innovation (IOI) prioritize job readiness.
Physics Wallah, which began as a YouTube channel in 2014, states that it provides over 4.6 crore (46 million) students with free education through its 112+ channels in five regional languages. Over 30 million people have downloaded the app, and 5.5 million of those downloads are from paying students.
In FY23, Physics Wallah’s revenue increased 3.3X to Rs 779 crore, but its profit decreased by over 90% to Rs 8.87 crore. Although the company has not yet disclosed its FY24 financial results, it expects to generate revenue of around Rs 2,000 crore in the final fiscal year.
The funding comes at a time when there is a noticeable slowdown in investments in edtech businesses. Edtech startups have raised approximately $160 million in 27 deals in 2024, according to data compiled by TheKredible. By contrast, funding for education technology reached $456 million in 2023, $2.3 billion in 2022, and $5.8 billion in 2021.
