Edtech major PhysicsWallah raises $210 million funding. In a very big funding round for the edtech ecosystem, PhysicsWallah, one of the major players in the edtech space, has now raised a $210 million, which catapults its valuation to an astonishing $2.8 billion. It's the biggest fundraising that has happened in the landscape of edtech. The investment was led by Asian hedge fund Hornbill Capital, while Lightspeed Venture Capital participated extensively in the round. The valuation has increased 150% from its previous round.
We are thrilled to announce that we've successfully raised over $210 million in our Series B funding round, at a valuation of $2.8 billion! A huge thank you to Hornbill Capital , @lightspeedvp Venture Partners, @gsvventures, and WestBridge Capital for their belief in our vision.… — Physics Wallah (PW) (@physics__wallah) September 20, 2024
PhysicsWallah, founded by Alakh Pandey in 2016 as a YouTube channel, has emerged as one of India's most successful edtech startups that primarily deals in coaching for engineering and medical entrance exams. The brand has now grown manifold and has become an epitome of resilience and innovation in the edtech industry. Now, with this company's second major funding round, it cements its status as one rising unicorn. As part of the funding round, it would be noted that there was a secondary share sale worth around $30-40 million, which would go to the management and the employees of PhysicsWallah. This strategic move only reflects on the fact that the company wanted to keep rewarding its internal talent and the management team. Other investors like WestBridge Capital also took part in this round with continued confidence in the growth trajectory of the edtech giant.
Future Plans
Alakh Pandey and Prateek Maheshwari, co-founders of PhysicsWallah, are looking to have major growth strategies in place with the newly raised funds. This includes expansion in offline business, new geographies, and maybe strategic acquisitions. "The fundraise helps us build our treasury, but we didn't necessarily need the capital for growth," said Maheshwari. PhysicsWallah's revenues have soared 12-fold from Rs 230 crore in FY22. PhysicsWallah's fund raise is of greater importance since while its competitors have been riddled by layoffs and financial strain, PhysicsWallah has grown under its focus on providing the best possible education outcomes for students.
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