PhysicsWallah is one of the most profitable ed-tech startups in India. It provides educational resources, particularly for students who are studying physics and other science subjects. Physics Wallah valuation has made it a hot topic in the ed-tech segment of Indian startups. It was founded by Alakh Pandey, a physics teacher and YouTube personality who has gained a large number of followers for his engaging and informative videos on physics.
The PhysicsWallah platform offers a range of resources, including online video lectures, notes, practice problems, and quizzes. As of now, PhysicsWallah’s valuation is Rs. 8,259 crores ($1.1 billion). In this write-up we will look into the valuation, funding, and financials of the company Physics Wallah.
Fundings & Shareholders Breakdown
Recently, Physics Wallah came into the limelight because of its profits and valuation. It raised the funds in a Series-A round. As of now, it held only one funding round i.e. on June 7, 2022. Did you know, it raised a whopping amount of Rs.825 crores from its leading investors in that funding round? Let’s look at the latest funding rounds of PhysicsWallah-
|Venture Capitalist (Lead Investors)||Location||Funding Amount|
|WestBridge Capital||Quatre Bornes (Mauritius)||Rs.825 crores ($100 million)|
|GSV Ventures||San Francisco (United States)|
|MMPL Trust||Bengaluru (India)||Undisclosed|
|Konark Trust||Bengaluru (India)||Undisclosed|
Currently, the market valuation of Physics Wallah is Rs.8,259 crore ($1.1 billion). Unfortunately, the company has not disclosed the percentage of shares owned by each shareholder in the current fiscal year.
Is Physics Wallah Profitable?
Let’s have a quick detour to the financials of PhysicsWallah in the last fiscal year-
|PhysicsWallah Financials||Amount (in Crores)|
|Market Valuation||Rs.8,259 crore ($1.1 billion)|
As you can see, despite the huge expenditure, PhysicsWallah managed to make good profits. Its 10X growth rate in revenue helped to scale over 14.2X annual profits worth Rs.98.23 crore. Also, the EBITDA (Earnings before interest, taxes, depreciation, and amortization) margin improved by 1,948 base points. Thus, you can say that PhysicsWallah spent 44 paise to earn a single rupee of operating revenue.
Do you know, PhysicsWallah is the sole startup that entered the unicorn club with a profitable income? Not only it survived the funding winter without firing any employees but also made a profitable unit economics! As per the latest reports, the primary sources of PhysicsWallah revenue were-
- YouTube: With 9.17 million subscribers, PhysicsWalla earned almost half of its revenue through online classes on YouTube.
- Educational Services: Offline Coaching & Online Classes on the PhysicsWallah app
- Sale of Study Materials: Books, Notes, and Test Papers
Below is the comparison of PhysicsWallah revenue for the last fiscal year-
|Revenue Sources||Amount Earned|
|Operating Revenue||233 crore|
|Cash from Operations||70.2 crore|
Youtube helped PhysicsWallah to establish a large audience which eventually became its loyal customers. Besides its online coaching, it also earns a good amount of money through offline coaching centers. Some of the prominent ones are located in-
- Bhopal, Varanasi
Expenses: Physics Wallah’s Expenditures
Following table provides a brief breakdown of PhysicsWallah’s expenditures-
|Employee Benefit Expenses||Rs.42.34 crore|
|Advertising & Promotional Expenses||Rs.11 crore|
|Legal & Professional Fees||Rs.17.3 crore|
|IT Costs||Rs.3.72 crore|
|Transportation Cost||Rs.4.07 crore|
|Other Operating & Admin Expenses||Rs.24.57 crore|
Future Plans of Physics Wallah
After the Series-A funding round, PhysicsWallah is looking for the next funding round this year. Here, it is anticipating to raise funds three times greater than its current valuation i.e. $3.3 billion. For this purpose, the company met with numerous private equity investors to raise funding in addition to its existing investors. The current investors like GSV Ventures and WestBridge Capital are going to increase their stakes in the company. Seeing the success of its teaching methods, it is expecting to enter the K-12 segment through both online and offline channels.