The new and latest edtech company to enter the Indian unicorn club is PhysicsWallah, who raised $100 million in Series A funding from Westbridge and GSV Ventures. Their startup has a valuation of 1.1 billion dollars.
PhysicsWallah is the first ed tech company to reach a valuation of over $1 billion. Overall, 101 companies in India have ever reached this point.
PhysicsWallah is a successful edtech startup joins this list with other unicorns like Byju’s, Vedantu, Eruditus and Vedantu.
The company has plans to grow its business, better brand itself, and add additional courses. With educational content in nine Indian languages, including Bengali, Marathi, Tamil, Telugu, Gujarati, Odia, Malayalam, and Kannada.
It is anticipated that this recent development will help with new initiatives to extend the learning journey of students, doing so by giving them the opportunity when it comes to reaching new heights in their career. It was said in an interview that PhysicsWallah founder and CEO Alakh Pandey has a vision for the latest initiative, which is always the goal of the company to make education available regardless of location and other constraints.
YouTube channel becomes a billion dollar company
Alakh Pandey created the PhysicsWallah YouTube channel in 2014 and it became popular among students. He turned down a higher salary offer to start his own business, where he can have more control and continue teaching.
The PhysicsWallah has more than 20 centres and is has been downloaded 50 thousand times on the Google PlayStore. They have 6.9 million subscribers on YouTube.
Over 10,000 students in 2020 and 2021 cracked competitive exams thanks to the company’s educational content.
With 1,900 employees, including 500 teachers, 90-100 tech experts, 200 university professors to answer student queries, and 200 professionals to create examination questions as well as term papers.
How an Indian based startup managed to reach the $1 billion threshold
PhysicsWallah is the only profitable edtech business and has taken no outside funding or assistance. Today, the company raised its first external funding round.
Pandey states that the company has been profitable and banking positive cash flow for the duration of its existence. The company’s revenue has grown 9-fold in a single year and is now at $65 million for FY23.
At the same time, experts anticipate a long funding winter and this may slow down startups in the edtech sector. Many students start going back to school just as funding dries up.
Even other edtech companies like Unadacemy, Vedantu, and FrontRow laid off 10-30% of its workforce to extend their runway.