Physics Wallah, an Indian education technology startup, has raised $210 million to grow its business. This funding was led by Hornbill Capital, with support from Lightspeed Venture Partners, GSV, and WestBridge. The company is now valued at $2.8 billion. Founded in 2020, Physics Wallah offers affordable online courses to help students prepare for exams.
It started as a YouTube channel and now runs a freemium model. The company focuses on quality education for all, especially those who cannot afford expensive coaching. With this funding, it plans to expand, hire more employees, and acquire new businesses to improve its content.
What is Physics Wallah?
Physics Wallah (PW) is an Indian education technology company that offers affordable online and offline courses for students preparing for competitive exams like JEE, NEET, UPSC, and other government exams. Founded by Alakh Pandey in 2020, the company started as a YouTube channel in 2016 and later expanded into a full-fledged ed-tech platform.
It follows a freemium model, providing free educational content on YouTube while offering paid courses with additional features like tests, homework, and mentorship. Unlike other ed-tech firms, Physics Wallah focuses on providing low-cost, high-quality education, with most courses priced under $50 (₹4000), making learning accessible to students from underprivileged backgrounds.
The company has seen rapid growth, recently raising $210 million in funding, bringing its valuation to $2.8 billion. It has also expanded into offline coaching through its PW Pathshala centers and is acquiring businesses to strengthen its content and reach. Despite challenges in the ed-tech industry, Physics Wallah continues to grow by prioritizing student success over high valuations and aggressive marketing.
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Why is This Funding Significant?
This funding is significant because it marks a major milestone in Physics Wallah’s growth and expansion in the highly competitive Indian ed-tech industry. The company raised $210 million, bringing its valuation to $2.8 billion, a huge jump from its previous valuation of $1.1 billion.
This shows strong investor confidence in Physics Wallah’s business model, especially at a time when other ed-tech firms like Byju’s and Unacademy are struggling due to financial and operational challenges.
The funding will help Physics Wallah expand its offerings, including hiring 1,000 new employees, acquiring companies with strong content and academic resources, and growing its offline coaching centers (PW Pathshala).
The investment also strengthens its ability to reach more students, especially in South India and underserved regions, making quality education more accessible. Moreover, this funding highlights a shift in the ed-tech sector, where companies that focus on affordable education and student outcomes are gaining traction, unlike those that rely heavily on aggressive expansion and marketing.
Despite the downturn in the Indian ed-tech market, Physics Wallah’s success proves that a sustainable, student-first approach can still attract strong investments.
How Will the Funds Be Used?
The funds raised by Physics Wallah will be used for several key initiatives to expand and strengthen its business.
- Hiring More Employees – The company plans to recruit 1,000 new employees across various departments, including marketing, sales, technology, and business development, to support both its main platform and subsidiaries.
- Expanding Offline Coaching (PW Pathshala) – Physics Wallah aims to increase its physical coaching centers across India, especially in tier-2 and tier-3 cities, making quality education accessible to more students.
- Acquiring Other Companies – The company is looking to acquire businesses with strong educational content and academic resources, including ed-tech firms and publishing houses, to enhance its learning materials.
- Strengthening Digital Offerings – Part of the funding will go into developing better online courses, upgrading technology, and improving the student experience through its app and website.
- Expanding in South India – Physics Wallah sees South India as a key market and plans to invest in companies that already have a strong presence in the region.
Founders’ Perspective
The founders of Physics Wallah, Alakh Pandey and Prateek Maheshwari, emphasize that their focus remains on affordable education, quality content, and student outcomes, rather than just financial growth.
Alakh Pandey, the CEO, highlighted that Physics Wallah is built for the “99%” of students who cannot afford expensive coaching classes. In an interview with CNBC, he said,
“We are not built for 1% of the country or 1% of the world, we are built for the remaining 99%, those who cannot go to these fancy coaching classes … now we enable different kinds of students.”
He also pointed out the mistakes made by other ed-tech companies, saying,
“Education is a different thing. It’s not like any other startup that you can grow and talk about crazy valuation … at heart, you have to accept that you are actually working to change the life of students.”
Prateek Maheshwari, the co-founder, expressed confidence in the growing demand for ed-tech services despite some companies failing. He said,
“I don’t believe the market has shrunk. A couple of players have struggled to perform post-Covid … but the learners are increasing year-on-year.”
Both founders believe in sustainable growth and are open to acquisitions that align with their mission, especially in new geographies and content-rich companies. They are also preparing for an IPO in the future, but as Pandey mentioned,
“It’s not that important for us when the IPO will happen, we are running the company like a public company.”
Their student-first approach and focus on long-term impact set Physics Wallah apart from other ed-tech firms.
Key Takeaways
- Major Funding & Growth – Physics Wallah raised $210 million, increasing its valuation to $2.8 billion, a significant rise from $1.1 billion in 2022.
- Focus on Affordable Education – The company continues to prioritize low-cost, high-quality learning, making education accessible to students from all backgrounds.
- Expansion Plans – The funds will be used to hire 1,000 employees, expand offline coaching centers (PW Pathshala), and acquire content-rich companies to strengthen its offerings.
- Sustainable Business Model – Unlike some failing ed-tech startups, Physics Wallah focuses on content quality, student success, and profitability, rather than aggressive expansion and marketing.
- Founders’ Vision – Alakh Pandey and Prateek Maheshwari stress that education should be about impact, not just valuation. They believe in steady growth and meaningful acquisitions.
Conclusion:
Physics Wallah’s rapid growth and successful funding highlight its strong position in India’s ed-tech sector. By securing $210 million, the company has reinforced its commitment to affordable education, expansion, and innovation. With plans to hire more employees, expand offline coaching centers, and acquire content-rich firms, Physics Wallah is set for long-term growth.
Unlike struggling competitors, it focuses on student success over aggressive expansion. As it prepares for a future IPO, the company remains dedicated to quality education and sustainable growth. With a student-first approach, Physics Wallah continues to shape the future of online and hybrid learning in India.
