Edtech startup PhysicsWallah raises Rs 1,754 crore

PhysicsWallah (PW), which had acquired the edtech platform Xylem, has raised $210 million (approximately Rs. 1754 crore) in its Series B funding round. This investment increases the company's post-money valuation to $2.8 billion, more than doubling its previous valuation of $1.1 billion.

The funding round was spearheaded by Hornbill Capital, with participation from Lightspeed Venture Partners and existing investors GSV and WestBridge. Alakh Pandey, founder and CEO of PW, in an official statement remarked on this investment, stating, “This is not just a validation of our efforts to democratise education and make quality education accessible to every student in India, but also a testament to the impact we have created over the years.”

Co-founder Prateek Maheshwari reportedly highlighted that the new funding will be pivotal for enhancing the company’s reach and technological capabilities. He expressed optimism in PW’s growth trajectory, noting, “FY25 is going to be the year of the largest absolute profitability for the PW Group. There are no good or bad markets, only good or bad stories – and ours is a great impact story.”

9500 hours of content each week

According to the company, Physics Wallah produces 9,500 hours of educational content each week, serving a student base that spans 18,808 pin codes, representing nearly 98% of pin codes in India. The new funding said to be strengthened PW's cash reserves, enabling it to support future growth initiatives. The company stated that it is also planning to expand its focus from school education to skilling, a move aligned with its vision to support students at every stage of their educational journey.

The edtech funding trend

Despite PW's success, the edtech sector is experiencing a downturn in investment. Data from The Kredible indicates that edtech startups raised only $138 million across 21 deals during the first half of 2024. This marks a significant decline compared to previous years, which saw $456 million in 2023, $2.3 billion in 2022, and $5.8 billion in 2021.