Physics Wallah raises $210 million in Series B funding, its largest since Byju’s fiasco

Edtech unicorn Physics Wallah has raised $210 million at a valuation of $2.8 billion, the largest fundraise in the edtech sector since 2022 after the Byju’s fiasco cast a shadow over the sector. The Series B round was led by hedge fund Hornbill Capital, with significant participation from Lightspeed Venture Partners, alongside its existing investors GSV and WestBridge.

This round values ​​Physics Wallah at $2.8 billion, which is a significant increase from the previous valuation of $1.1 billion the company achieved in its last funding round in June 2022.

It is also the largest fund raised by an Indian edtech in the last two years. Physics Wallah has raised over $310 million in this round so far.

The current round also includes a secondary transaction worth around $35, in which the company’s founders and employees also sold some of their shares.

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The company will now use the funds primarily to make acquisitions to support its future growth plans, with a focus on consolidation in the education market. It plans to continue inorganic expansion to enter the competitive K-12 formal education segment as well.

Today, the edtech offers online, offline, and hybrid platforms. It serves over 4.6 crore students through over 112 YouTube channels. Fifty-five lakh of these students are now paying customers.

The company operates a network of around 180 brick-and-mortar centres and also sets up technology-enabled offline and hybrid centres across 105 cities in India.

Now, the company’s co-founder said in a statement that fiscal year 2025 will be the year of peak EBITDA profitability for Physics Wallah Group.

This comes after the company announced a sharp 91% decline in profits in fiscal 2023 due to a rise in expenses, even as its total revenues grew by around 243% over the previous year to ₹108.04 crores in fiscal 2023. So, in very challenging times for the edtech sector, here comes a mega round of funding for Physics Wallah.

In a statement from the company, Abhishek Mishra, Chief Strategy Officer of Physics Wallah, said, “We were overwhelmed to see such great excitement and response to our Series B funding round from both new and existing investors. We are very excited to welcome partners who share our values ​​and principles and align with our vision of creating social impact at scale through high-quality education.”

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