PhysicsWallah raises $100 mn, becomes India’s 101st unicorn
It’s the first edtech player to achieve the milestone in series A fundraising round
MUMBAI: PhysicsWallah became India’s latest unicorn startup after the edtech platform for engineering and medical entrance exams raised $100 million ( about ₹ 777 crore) in a Series A round of funding from marquee investors Westbridge and GSV Ventures.
PhysicsWallah is India’s 101st unicorn and the first edtech firm in 2022 to join the club of startups to have a valuation of at least $1 billion, joining the ranks of Byju’s, Unacademy, Vedantu, Lead School and upGrad, among others in the edtech space.
The Noida-based firm will use the fresh funds to expand its business, branding activity, open more learning centres, and start more course offerings. PhysicsWallah currently has 5.2 million Android downloads and 6.9 million subscribers on YouTube.
Launched during the pandemic in 2020, PhysicsWallah aims to prepare students for engineering and medical entrance examinations. Founded by Alakh Pandey and Prateek Maheshwari, it specializes in giving comprehensive lectures and sessions on YouTube, the PhysicsWallah (PW) app, and on its website to students aspiring for NEET and JEE Mains.
The edtech platform facilitates interactive educational content in the form of lectures and audio-visual media. In 2020 and 2021, more than 10,000 students cracked competitive exams like NEET and JEE.
“This latest development will help us further our vision and implement new initiatives to augment the journeys of students, enabling them to reach new heights in their careers. Our commitment remains ‘every dollar spent in PW is for the greater good of learners’,” said Pandey, who is also chief executive at PhysicsWallah.
Sandeep Singhal, managing director, WestBridge Capital, said, “The Indian edtech ecosystem has grown considerably over the last two years; however, recent developments have demonstrated the first-hand importance of an efficient edtech infrastructure. PW creates long-tail value for learners by delivering high-quality education at a democratic price. PW is one of the rare startups with an understanding of the education that today’s India needs. The founder’s focus on learning outcomes of students excites us and we look forward to a long partnership with them.”
The company, Pandey said, has been profitable since inception with positive cash flows and reserves. Its revenues grew ninefold in FY22, which it expects to grow to $65 million in FY23.
In 2016, PW first began operations as a YouTube channel by Pandey. In 2020, he partnered with Maheshwari to work on a technology solution for students by launching the PW app. The company currently has over 8.5 million users.
PhysicsWallah said it aims to connect with more than 250 million students and reach every corner of India by 2025.
It currently has 1,900 employees, including 500 teachers and 90-100 tech experts. It also has 200 associate professors available to address student queries and another 200 professionals to create exam questions and term papers. The robust fundraise comes at a time when the edtech space is seeing a massive churn and funding crunch, resulting in mass layoffs and resignations.