PhysicsWallah Raises $210 Million in Series B Funding, Valuation Reaches $2.8 Billion

India’s edtech unicorn, PhysicsWallah (PW), has secured $210 million in its Series B funding round, elevating the company’s valuation to $2.8 billion. The funding round, led by Hornbill Capital, also saw participation from Lightspeed Venture Partners, GSV Ventures, and WestBridge Capital. This marks a 2.5x increase in the company’s valuation from its previous $1.1 billion.

Founded by Alakh Pandey in 2016, PhysicsWallah has rapidly grown to become one of the leading edtech firms in India, known for its affordable and accessible education solutions. This fresh round of funding is a strong signal of renewed investor confidence in the edtech sector, which has seen a decline in investments over recent years.

Despite the downturn in the edtech funding landscape, with investment plummeting from a high of $4.1 billion in 2021 to $321 million in 2023, PW’s successful raise highlights the company’s potential for continued growth. The funds will be used to expand its operations, particularly its network of micro-education hubs across India, aimed at offering localized and accessible education.

Also Read: z21 Ventures Secures $20 Million in Latest Funding Round

PW’s focus on offline expansion has contributed significantly to its growth, with nearly 45% of its revenue now coming from physical education centers. The company reported Rs 772 crore in standalone operating revenue for FY23, a threefold increase from the previous year.

Although profits dipped due to increased growth-related expenses, the company’s co-founders, Alakh Pandey and Prateek Maheshwari, remain optimistic, targeting more than 50% growth in FY25. The fresh capital will also enable PhysicsWallah to continue acquiring smaller education platforms with an emphasis on community-driven, teacher-led startups.

PW plans to increase its presence in South India while continuing its strategic focus on micro-hubs, which are smaller, more efficient centers closer to students’ homes, avoiding the pitfalls of larger education hubs like Kota. The company’s acquisition of firms like Xylem Learning and PrepOnline reflects its broader growth strategy aimed at enhancing its market position and expanding its services to new geographies.

This funding round marks a significant milestone for PhysicsWallah as it continues its mission to provide affordable, quality education to students across India.