PhysicsWallah Funding: Alakh Pandey and Prateek Maheshwari Expand Online Coaching Empire
PhysicsWallah Closes Significant Funding Round
Online coaching platform PhysicsWallah has closed a $210 million financing round, marking a pivotal moment for the firm within the edtech sector, which has faced enormous challenges post-Covid-19. This round, led by Hornbill Capital, values the company at $2.8 billion, a notable increase of over 150% from its previous valuation.
Strategic Use of Funds
Founders Alakh Pandey and Prateek Maheshwari indicated that the funds will be strategically allocated to expand its offline presence and diversify into new regions, alongside potential acquisitions. The financing includes a secondary sale of shares worth around $30-40 million.
- The funding round is crucial for PhysicsWallah amid an overall downturn in the edtech industry.
- The company aims to maximize student outcomes and grow its community.
- Despite the challenges in the sector, PhysicsWallah has shown resilience by expanding its offline centres.
Performance and Future Outlook
In FY24, PhysicsWallah reported a standalone revenue of Rs 1,600 crore, reflecting a growth of 2.5 times compared to the previous year. Despite a decline in net profit due to rising employee costs, the company aims for profitability from its offline centres.
With a strong focus on growth, PhysicsWallah plans to continue its trajectory by enhancing its offerings beyond online coaching. The founders expressed aspirations for an eventual IPO to provide liquidity to investors.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.