India edtech start-up gets unicorn status on Series A

WestBridge Capital and GSV Ventures led the round. The proceeds will be used for business expansion, brand building, opening more learning centres, and adding new course offerings, according to a statement.

The company was founded in 2016 by Alakh Pandey, a regular physics teacher who started delivering lessons via YouTube, accumulating a significant following. He moved to upgrade the offering in response to COVID-19 and rising demand for remote learning, teaming up with Prateek Maheshwari to create an app.

PhysicsWallah, which claims to be India’s 101st unicorn, continues to deliver lectures, videos, and study notes through app and YouTube. The app has achieved 5.2m downloads in the Google Play Store, while YouTube subscribers amount to 6.9m.

The company’s total headcount of 1,900 includes 500 teachers and more than 90 technology experts, 200 associate professors who are available to address queries from students, and 200 professionals tasked with drawing up exam questions and term papers. It claims that one in six medical students and one in 10 engineering students attending colleges in India are PhysicsWallah alumni.

In 2020 and 2021, more than 10,000 students passed the National Eligibility cum Entrance Test (NEET), India’s entrance test for those who want to pursue undergraduate medical studies, and the Joint Entrance Examination (JEE), which is used to assess candidates for the various branches of the Indian Institute of Technology (IIT).

According to Pandey, PhysicsWallah has been profitable since its inception. Revenue grew ninefold in the 2022 financial year compared to the prior 12 months. The revenue run rate for 2023 is USD 65m.

Next steps include bridging the accessibility gap by rolling out content in nine vernacular languages and doubling the number of offline coaching facilities. There are already 20 centres across 18 cities with more than 10,000 students enrolled for the 2022-2023 academic year. One of the company’s overriding goals is to connect with 250m students by 2025.

“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,” said Sandeep Singhal, a managing director at WestBridge.

"PhysicsWallah creates long-tail value for learners by delivering high-quality education at a democratic price. PhysicsWallah is one of the rare start-ups with a profound understanding of the education that Bharat today needs.”

India’s edtech space is intensely competitive, arguably led by Byju’s, a diversified platform that raised USD 800m in March at a valuation of USD 22bn. In the past 12 months, at least four companies have closed rounds at valuations of more than USD 1bn, including live streaming app Vedantu, video-focused Unacademy, professional upskilling portal Eruditus, and B2B supplier Lead School.

However, in recent months, numerous companies have been shedding staff, reportedly including Unacademy and Vedantu, while some smaller players have closed. This has been blamed on a slowdown in funding, unsustainable business models, and slowing demand for online services as users reengage with classroom-based offerings.

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• Topics
• South Asia
• Early-stage
• Consumer
• Technology
• India
• Education
• WestBridge Capital Partners
• GSV Ventures