Physics Wallah seeks to raise $250M in funding: Report

Edtech unicorn Physics Wallah is reportedly in preliminary negotiations to raise at least $250 million in funding from new and existing investors.

Moneycontrol has reported that the edtech firm is expected to raise fresh funding at three times its current valuation. It hopes to bring its valuation to $3.3 billion from $1.1 billion.

Physics Wallah has met with many private equity (PE) investors to raise funding, the report said, adding that its existing shareholders GSV Ventures and WestBridge Capitalare also expected to increase their stakes.

YourStory could not independently verify the report. Physics Wallah did not respond to the queries sent by YourStory at the time of publication of this news.

As the conversations are still in their early stages, the round size and valuation are subject to change, according to the Moneycontrol report.

Physics Wallah has been looking for additional financing since the beginning of the year, the report noted. It seeks to raise fresh funding not because it requires it, but to increase its valuation and to fund possible mergers and acquisitions, it added.

Recently, the Delhi-based edtech firm acquired UAE-based startup Knowledge Planet in an undisclosed deal. This was Physics Wallah's first international acquisition.

Physics Wallah is the only profitable edtech startup in India. Its net profit for the financial year 2021-22 was Rs 97.8 crore, up 14-fold from Rs 6.93 crore in the year-ago period. Its results have come at a time when edtech unicorns are witnessing losses, laying off employees, slowing expansion plans, and trying to burn as little cash as possible amid a funding winter.

The edtech firm has a revenue of about $150 million and is expecting strong growth next year too, the report said, adding that the company will aggressively look out for acquisitions and other avenues of growth, considering it has money in the bank.

Last month, Physics Wallah and e-learning platform Utkarsh Classes formed a joint venture to provide academic training and course offerings in various categories.

Physics Wallah plans to hire 2,500 employees across verticals within the first quarter of 2023, amid the layoffs in the edtech sector.

The brainchild of Alakh Pandey and Prateek Maheshwari, Physics Wallah started its journey in 2016 as a YouTube channel to coach JEE and NEET aspirants. It now offers online courses as well as offline and hybrid coaching through its Vidyapeeths and Pathshalas across India. 

In June last year, PhysicsWallah became India’s 101st unicorn after raising $100 million in its first round of funding from WestBridge Capital and GSV Ventures at a valuation of $1.1 billion.