Physics Wallah attracts $210 Million
Recently, Physics Wallah gets a major revival after it secured $210 Million in Series B Funding. Even though other edtech platforms are struggling to meet the intensified expectations and valuations, Physics Wallah has proved itself as an exception and stood out with a high milestone where the valuation has reached up to $2.8 Billion.
In the funding round led by Hornbill Capital, the company fortunately gained $210 million which has led to the company’s valuation to drastically rise up to $2.8 billion. This has marked 2.5 times increase from its previous valuation which was held at $1.1 billion.
The prominent participants in this funding round were Lightspeed Venture Partners, along with existing investors WestBridge and GSV.
The best part of this funding is that it comes during a period which is famous for a funding drought in the Indian edtech sector. Many edtech firms in today’s era have been experiencing significant valuation declines and Physics Wallah stands out separately with an outstanding valuation.
Lightened Hope for Edtech Industry
Byju’s once was the leader of all the edtech firms, but it faced a high downfall from $22 billion to almost $1 billion due to ascending financial pressures and investigation over its business operations.
With the example of Byju’s it can be stated that despite the initial success and rapid growth of edtech firms, these companies have encountered enormous hurdles ranging from heightened government oversight, financial issues, intensifying competition, and altering consumer needs.
The edtech industry is evolving into an increasingly competitive environment, with new players coming up and offering similar services. Both the edtech companies- Byju’s and Unacademy, have reported tremendous financial losses and faced questions on their long-term stability and sustainability.
A major threat for all the edtech companies is the shift in consumer behavior towards traditional learning methods.
This means, the success of this company helps to restore the confidence that both the new and existing investors have in the company’s mission to bring democracy in education across the country. As of now, the company claims to provide an impressive 9,500 hours of weekly educational content.
Physics Wallah is currently serving a vast student base across 18,808 pin codes in India covering approximately 98 percent of all pin codes in the country.
Where will Physics Wallah apply the funds?
With the large funding, the company aims to bring an increase in its cash reserves to support future growth. It plans to tactically scale its operations keeping emphasis on integrating its position in edtech market.
The Founder and CEO, Alakh Pandey expressed delightfulness about the investment and mentioned that he is excited to partner with Hornbill Capital and Lightspeed Venture Partners in this journey. He also mentioned being grateful for the continued trust from WestBridge and GSV.
This funding round has arrived when the company is on its way to achieve profits by the end of financial year 2025. The Co-founder, Prateek Maheshwari also spoke about it and mentioned that the funding would help to in expanding the reach, enhancing technological capabilities and delivering unparalleled learning experiences.
As the company plans to apply this funding, it is positioning itself not only as a leader in the edtech but also as a force in the educational sector of India which is bringing a big chance especially with the ongoing challenges faces by competitors like Byju’s.
Conclusion
The company, led by two co-founders- Alakh Pandey and Prateek Maheshwari was established in 2016 as a Youtube Channel and later was formed as a company in 2020.
This funding is thought to transform not only just the company but also revive the entire edtech sector which had been facing extreme difficulties to survive amidst financial challenges.
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