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Edtech unicorn PhysicsWallah receives SEBI nod for IPO

EntrackrEntrackr ยท 1m ago
Edtech unicorn PhysicsWallah receives SEBI nod for IPO
Medial

Edtech unicorn PhysicsWallah receives SEBI nod for IPO Backed by investors including Lightspeed, WestBridge, Hornbill Capital, and GSV Ventures, PhysicsWallah has an estimated valuation of $2.8 billion. Edtech unicorn PhysicsWallah has received approval from the Securities and Exchange Board of India (SEBI) for its pre-IPO draft filing, clearing a major regulatory hurdle on its path to public markets. The Noida-based company submitted its draft under SEBIโ€™s confidential route in March this year. With this approval, PhysicsWallah is set to raise around Rs 4,600 crore (about $533 million) through a mix of fresh issuance and an offer for sale, joining the pipeline of new-age tech firms eyeing the bourses in 2025. Backed by investors including Lightspeed, WestBridge, Hornbill Capital, and GSV Ventures, PhysicsWallah has an estimated valuation of $2.8 billion. It will also become the first edtech unicorn to hit the stock exchange. In March, the company inducted three independent directors to its board to align with public company norms and best practices. Last month, it also appointed Satish Sharma as Chief Marketing Officer to bolster its brand strategy and expansion plans. PhysicsWallah also completed its conversion to a public entity this year, a prerequisite for listing on the Indian stock exchanges. The move is part of the companyโ€™s broader strategy to institutionalize operations as it prepares for public scrutiny and capital market participation. While the company has yet to file its annual financial statements for FY25, it posted revenue of Rs 1,940.4 crore for FY24 with a loss of Rs 375 crore. The company has a deep focus on offline operations and expects to clock more than Rs 1,000 crore in revenue from this segment. It also plans to open more centres in both existing and new cities. The development comes at a time when the edtech sector is struggling in terms of fundraising and scaling. However, PhysicsWallahโ€™s IPO will mark a significant milestone for the Indian edtech sector, potentially paving the way for more tech startups to test the public markets.

PhysicsWallah closes $210 million funding round led by Hornbill Capital valuing it at $2.8 billion

Economic TimesEconomic Times ยท 11m ago
PhysicsWallah closes $210 million funding round led by Hornbill Capital valuing it at $2.8 billion
Medial

PhysicsWallah, an online coaching platform, has raised $210 million in a funding round led by Hornbill Capital and participated by Lightspeed, valuing the edtech company at $2.8 billion. The funds will be used to expand its offline presence, diversify into new regions, and potentially make acquisitions. Despite the decline in enrollments in Kota, PhysicsWallah has not been affected and plans to add 50 more centers this year. The company's business is divided between online and offline, with 55% coming from online channels. This funding comes at a time when the Indian edtech sector is facing challenges, with some companies opting for offline expansion.

Exclusive: PhysicsWallah set to raise $150 Mn at $2.8 Bn valuation

EntrackrEntrackr ยท 1y ago
Exclusive: PhysicsWallah set to raise $150 Mn at $2.8 Bn valuation
Medial

While the edtech space has been going through a long spell of the so-called โ€˜funding winterโ€™, PhysicsWallah (PW) appears close to raising a new large round. Fresh funding will be led by new investors whereas existing investors including Westbridge and GSV Ventures will also participate, three sources aware of the discussion told Entrackr. โ€œPhysicsWallah is set to raise $150 million from new and existing backers,โ€ said one of the sources requesting anonymity. โ€œThe terms of the deal have been sealed and the transaction is likely to be public soon.โ€ This will be the second financing round for the Alakh Pandey-led firm in the past two years. PhysicWallah raised $100 million in a Series A round led by Westbridge and GSV Ventures in June 2022. โ€œPhysicsWallah will be valued at around $2.8 billion in the new round,โ€ said another source who also wished not to be named. This will be over a 2.5X jump in the companyโ€™s valuation as PhysicsWallah was valued at $1.1 billion in its Series A funding. Queries sent to PhysicsWallah and Westbridge didnโ€™t elicit any immediate response. We will carry their comments in case they respond. According to the startup data intelligence platform TheKredible, WestBridge held a 2.4% stake in PhysicWallah while GSV owned 1.44% as of the Series A round. Its co-founders Alakh Pandey and Prayeek Maheshwari cumulatively command 86.54% of the company. PhysicsWallah started with online coaching for IIT/JEE but has now become a full-fledged education firm, offering offline coaching, schools, colleges, and upskilling programmes. According to sources, about 30% of its revenue comes from JEE and NEET coaching whereas offline coaching (via Vidyapeeth and Pathshala) contributes 35% of the collection. While the company is yet to disclose FY24 numbers, PhysicsWallahโ€™s revenue surged 3.3X to Rs 779 crore in FY23. At the same time, the firmโ€™s profit declined more than 90% to Rs 8.87 crore in FY23. In November last year, the company laid off 120-150 employees as a cost-cutting measure. Entrckr was the first to report the development. As per data compiled by TheKredible, edtech startups raised only $138 million across 21 deals during the first half of 2024. This is a sharp fall from $456 million in 2023, $2.3 billion in 2022, and $5.8 billion in 2021. The funding news is the strongest testament yet to the investor conviction in PhysicsWallahโ€™s long-term strengths. This incredible loyalty and credibility with the student community other edtechs have simply not been able to earn for love or money. The valuation also indicates a relatively long time investors are willing to wait it out for the firm to deliver on its potential and declared ambitions. A funding round in this environment will not just buy PhysicsWallah time, but also provide the gunpowder to scale up at a much lower cost thanks to the emasculated state of the competition.

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