PhysicsWallah’s 161% Revenue Boost in FY24 Amidst Growing Losses and $500 Million IPO Plans

PhysicsWallah, one of India’s fastest-growing edtech startups, has reported substantial revenue growth for the financial year FY24, with its operating revenue soaring by 161% to Rs 1,940 crore. This increase marks a significant leap from the Rs 744 crore it earned in FY23, underlining the company’s success in expanding its educational offerings and growing its user base. However, this rapid growth has come with notable financial challenges, as the company’s losses surged to Rs 1,130 crore in the same period, a steep increase from Rs 84 crore in the previous fiscal year.

The rising losses are largely due to PhysicsWallah’s adoption of India’s IND AS accounting standards, which have resulted in higher reported losses compared to previous figures. Under IND AS, the company now accounts for non-cash expenses, including the costs associated with Compulsorily Convertible Preference Shares (CCPS). These expenses, which amounted to Rs 756 crore in FY24 compared to Rs 67 crore the previous year, have significantly impacted the company's bottom line. Despite this, the company remains focused on growth and has continued to expand its user base, as well as its offline presence in cities across India.

In preparation for an initial public offering (IPO), PhysicsWallah has shortlisted prominent financial institutions such as Axis Capital, Kotak Mahindra Capital, Goldman Sachs, and JP Morgan to oversee its planned $500 million IPO. This strategic move comes shortly after the company raised $210 million in a funding round led by Hornbill Capital, with participation from major investors like Lightspeed Venture Partners, WestBridge Capital, and GSV Ventures. The company’s valuation has reached $2.8 billion, a substantial increase from its previous $1.1 billion valuation, indicating strong investor confidence in PhysicsWallah’s potential within the edtech sector.

PhysicsWallah, headquartered in Noida, has seen rapid growth in recent years, with over 5.5 million paid students and 4.6 crore subscribers on its YouTube channels. The platform’s success can be attributed to its focus on affordable and accessible educational content, particularly for students preparing for competitive exams in India. Founded by Alakh Pandey, a former teacher, and Prateek Maheshwari, the company has developed a strong brand through its interactive online classes, study materials, and test preparation resources. The company also operates over 105 offline centers across the country, serving more than 200,000 students in these physical locations.

ALSO READ| Physics Wallah Raises $210 Million in Series B Funding at $2.8 Billion Valuation

The Indian edtech sector has experienced both opportunities and challenges in recent years, especially as demand surged during the COVID-19 pandemic, followed by a period of market adjustment. While other edtech firms have faced challenges in maintaining growth and managing costs, PhysicsWallah has continued to attract investment and expand its services. This momentum reflects the platform's adaptability and strong positioning within India’s competitive education market.

As PhysicsWallah prepares to go public, the company aims to leverage its significant growth in both digital and offline learning. Its expansive network of offline centres allows it to cater to students in various regions and offers a hybrid learning model that combines online and in-person instruction. This approach aligns with the evolving needs of Indian students, many of whom value the flexibility of online learning alongside the structure of traditional classroom environments. By providing a comprehensive educational platform, PhysicsWallah has tapped into a broad market that includes students from diverse backgrounds seeking affordable and high-quality education resources.

Looking ahead, PhysicsWallah’s IPO could mark a pivotal moment for the company, giving it access to additional capital that could be used to fuel further growth initiatives, including expanding into new markets and investing in technology to enhance its platform. The IPO may also enable PhysicsWallah to strengthen its position against competitors in India’s booming edtech industry, where the demand for quality education remains high despite economic fluctuations.

ALSO READ| Why Donald Trump’s Second Term is Making Him More Powerful Than Ever?

While its financial performance in FY24 reflects both remarkable revenue growth and substantial losses, PhysicsWallah’s long-term strategy focuses on sustainable growth, innovative learning solutions, and an accessible platform that continues to draw millions of users. This balance between growth and financial health will be crucial as the company navigates its IPO process and expands its reach within India’s education landscape. With an IPO on the horizon and strong backing from investors, PhysicsWallah is well-positioned to continue shaping the future of edtech in India, helping students access quality education at scale.