25 March 2024 – Alakh Pandey, the founder and CEO of test-prep business Physics Wallah, told ET that the company plans to create “as many offline centres as it can” in FY25, even if doing so reduces earnings.
Physics Wallah has 130 offline instruction locations in 105 cities, 55 of which debuted this fiscal year. The company was valued at more than $1 billion after an investment round in 2022. It intends to open another 50 by the end of the next fiscal year, according to Pandey.
“Capex is high in offline centres. A facility must be profitable for three years. I don’t want to launch offline locations gradually and wait too long,” Pandey said to ET. “I want to move throughout India and create as many offline locations as we can right now since our brand and the student base are strong. We must sacrifice some profit in order to achieve it.
Conclusion
Despite making up just 5% of Physics Wallah’s student body, Pandey claims that the offline business now accounts for 40% of the school’s overall earnings. The corporation wants to increase its revenue share to around 45%.
