Edtech giant PhysicsWallah (PW) continues its profitable streak, marking the third consecutive year of profitability as it reports a remarkable 3.4x surge in revenue for FY23, amounting to ₹798 crore.
PW’s revenue from operations soared to ₹771.76 crore in the fiscal year ending March 2023, witnessing substantial growth from ₹232.47 crore in the previous year and ₹24.6 crore in FY21. The company credits this significant upsurge to its intensified presence in the offline educational segment.
Reportedly, PW's adjusted Ebitda for FY23 stands at ₹127 crore, slightly lower than the previous fiscal year. Meanwhile, total expenses rose to ₹777 crore, attributed to various expenses including employee costs, which surged from ₹42 crore to ₹406 crore, inclusive of ESOP benefits.
Expansion and Student Outreach
Prateek Maheshwari, PW’s co-founder, highlighted the substantial growth in both online and offline categories. The online student headcount soared from 900,000 to 2.35 million, while offline enrolments increased to 60,000 in FY23. The company solidified its position in NEET/JEE and diversified into other domains like UPSC, Commerce, Gate, government exams, and skills.
After achieving unicorn status last year, PW secured $100 million in Series A funding, contributing to its valuation of $1.1 billion. Nearly 40% of this funding was allocated for acquisitions, resulting in eight successful acquisitions in FY23, poised to bolster the company’s FY24 financials by approximately Rs 500 crore.
Expressing a focus on growth over immediate margin stability, PW aims to expand to over 120 centres through its Vidyapeeth (offline) and Pathshala (hybrid) centres, up from the existing 58. Their ambitious target includes teaching 250,000 students by the 2024-25 academic year, a substantial increase from 140,000 in the 2023-24 academic year.
PhysicsWallah (PW), the name synonymous with affordable and accessible education in India, has carved a remarkable path in the edtech landscape. From humble beginnings as a YouTube channel focusing on physics, PW has transformed into a multi-faceted education giant, empowering students across various academic spheres. Here's a glimpse into their journey:
Founded in 2016 by Alakh Pandey, PW originated as a free YouTube channel offering engaging physics lessons. Its focus on quality content and relatable communication resonated with students, propelling its organic growth.
Accessibility lies at the heart of PW's mission. Recognizing the financial constraints faced by many students, they offer a blend of free and affordable online courses for competitive entrance exams like NEET and JEE, as well as school curriculum support. This commitment to inclusivity has garnered them immense popularity, particularly in rural areas.
While online learning remains a core strength, PW has strategically forayed into the offline space. Their Vidyapeeth and Pathshala centers offer comprehensive classroom learning experiences, catering to diverse preferences and learning styles.
PW's reach extends beyond exam preparation. They offer courses in various subjects, including UPSC, Commerce, GATE, and skill development programs. This diversification caters to a wider range of career aspirations and life goals.
PW's growth has been fueled by strategic acquisitions of eight profitable companies in FY23. These acquisitions not only diversify their offerings but also bring proven expertise and established student bases, accelerating their expansion.
While profitability is important, PW prioritizes long-term growth and impact. Their aggressive expansion plans, aiming for over 120 offline centers and 250,000 students in the coming year, showcase their commitment to shaping the future of education in India.
Competition in the edtech space is fierce, and changing regulations can pose challenges. However, PW's strong brand identity, focus on affordability, and strategic acquisitions position them well to navigate these hurdles. With their ambitious vision and unwavering commitment to accessibility, PW is poised to continue its meteoric rise, democratizing education and empowering students across India.