PhysicsWallah set to be India’s most valuable edtech with $3.7B valuation
Following its $210 million Series B funding round last year, the IPO-bound PW had a post-money valuation of $2.8 billion; with the latest funding, it is now set to surpass Unacademy and Eruditus in valuation.
PhysicsWallah (PW) is poised to become India’s most valuable edtech firm with a ~$25 million pre-IPO secondary funding round led by existing backer WestBridge Capital, pushing its valuation to $3.7 billion, people aware of the matter told YourStory.
The initial public offering (IPO)-bound company’s post-money valuation was at $2.8 billion following the $210 million Series B funding round last year. With the latest funding, PW’s post-money valuation is set to surpass Unacademy ($3.4 billion) and Eruditus ($3.1 billion), based on their last valuations.
Mint was the first to report on PW’s secondary funding round.
In addition to WestBridge Capital, some other investors, including high-net-worth individuals (HNIs), also took part in PW’s secondary funding round, said one of the people.
A secondary funding round is when existing investors or shareholders sell their shares to new investors, rather than the company issuing new shares. This allows early investors, employees, or founders to liquidate their holdings without the company raising fresh capital.
According to Tracxn, WestBridge Capital held a 6.3% stake in PW. Hornbill Capital, which led the Series B round, owns 2.9%, while Lightspeed Venture Partners, a significant participant in that round, holds 1.8%. PW’s existing backer, GSV Ventures, has a 2.1% stake in the company.
Founder and CEO Alakh Pandey holds 38.7% of the company, the same share as Co-founder Prateek Maheshwari.
YourStory has reached out to PhysicsWallah and WestBridge Capital with queries.
The Noida-based firm, preparing to go public this year, is expected to file its draft IPO papers next month, according to sources familiar with the matter.
As part of its preparations, PW has made several key hires, including Ajinkya Jain as Group General Counsel, Company Secretary, and Compliance Officer. In November, it appointed former Blinkit CFO Amit Sachdeva as Chief Financial Officer following the announcement of its FY 2023-24 financial results.
In FY24, PW's losses widened significantly due to a sharp rise in employee benefit costs and other expenses, overshadowing a 2.6-fold increase in operating revenue.
The heavy losses stemmed from PW’s rapid expansion over the past few years. Originally focused on the test-prep segment, the edtech company has significantly diversified its offerings to include everything from school education to skills training, broadening its reach to a wide base of learners.
The Alakh Pandey-led firm reported a consolidated loss of Rs 1,131.3 crore in FY24, a 13.5X surge from Rs 84.1 crore in the previous fiscal year.
PW had been the only profitable edtech unicorn until FY22 while steadily growing its top line.