Physics Wallah is soon going to raise $250 million in funding to increase its valuation. The company aims to expand its operations by opening more offline learning centres, offering more courses and focusing on branding.
While the education sector is paralyzed with problems of reopening physical classes, The Company is in talks for raising funds at such a huge valuation. Alakh Pandey’s PhysicsWallah is expected to rise in terms of valuation to whopping $3.3 billion from its current valuation at $1.1 billion. The company has also been working closely with Private Equity (PE) investors. The company’s existing investors which include GSV Ventures and WestBridge Capital will also be extending their bets.
Since the beginning of this year, the Company has been in talks regarding funding. As the talks are still in their nascent stage, the aforementioned valuation and terms and conditions may still change as the funding processes progress.
“The company will raise at least $250 billion. PhysicsWallah being an already profitable business, doesn’t really require additional capital at this stage; the fundraiser is aimed at improved valuation. This will empower the Company to attract better merger and acquisitions deals. Raising funds in such an environment will help PhysicsWallah set a valuation benchmark.”, Said one of the persons with the knowledge of the fundraiser.
The company has grown its operating revenue ten times to ₹232.5 crore. The company also reported a profit of ₹100 crore. Moreover, PhysicsWallah is the only profitable edtech company in the country.
The company now aims to grow its revenue to ₹1200 crore in the current fiscal year along with an EBITDA (Earnings before interests, taxes, depreciation and amortization) of 40-45%. If the edtech company records such growth in the current fiscal year, it will be the only edtech company in the country to record 100% revenue growth.
PhysicsWallah To scale its business
“PhysicsWallah currently has a revenue of about $150 million. With the new fundraiser and its earnings through profits, the company will look out vigorously for further acquisitions as opposed to other firms that cut down costs. Additionally, the company’s valuation has been marked up internally by investors. Therefore, PhysicsWallah is looking to raise a new round on that valuation. PW will also soon exceed the valuation of Unacademy which has been stagnant with a valuation of $3.4 billion since 2021.”, Opined one of the spokespersons.
These ambitious plans of the company are striking the market at times when other players in the industry are suffering with slow growth and reopening problems.
As fundings to edtech startups in India have slowed down substantially this year, other players such as Vedantu, Unacademy and Byju’s have fired more than 1000 employees to cut costs and defend the problem of slow growth in the industry.
Previously, Byju’s had raised $250 million in October 2022. However Byju’s could only do the fundraiser with a flat valuation of $22 billion last year.
Last year in June, the Company had raised $100 million from WestBridge Capital and GSV Ventures at a valuation of $1.1 billion. PhysicsWallah aims to expand in the areas of branding, establishing offline learning centres and offering more courses.
The company has now become the talk of the town with its ambitious plans of raising funds and growing valuation. It is also the only profitable edtech company in the country. Despite the edtech industry facing various post-pandemic problems, the edtech firm is all set to raise $250 million in fundings with old and new investors and companies which include GSV Ventures and WestBridge Capital.