Physics Wallah Reports Robust Financial Performance in FY23 with Revenue Surging to INR 798 Crore

Jan 01, 2024 Mark

India, Jan 01, 2024: Physics Wallah (PW), an Edtech company, has reported substantial financial gains for the fiscal year 2023, marking its third consecutive year of profitability. The company disclosed a total revenue of INR 798 crore, showcasing a remarkable 3.4 times increase compared to the preceding fiscal year. Alongside this financial success, PW noted a surge in student enrollment, reaching a total of 24 lakhs during FY23.

The company’s strategic approach to customer acquisition costs (CaCs) was highlighted, emphasizing community-focused growth and integration across the value chain. The surge in revenue was primarily attributed to an expanded reach within the offline category, with revenue from operations escalating to INR 771.76 crore during FY23. This significant rise is compared to INR 232.47 crore in the previous fiscal year and a mere INR 24.6 crore in FY21.

PW’s financial success was accompanied by an increase in student numbers across various exam categories, skilling programs, and a notable surge in offline enrollments. The company’s fiscal strategy included raising USD 100 million during FY23 and engaging in strategic mergers and acquisitions (M&A), resulting in eight profitable partnerships. The inorganic revenue generated from these M&A activities is expected to reflect in the FY24 financials.

Remarkably, PW reported an adjusted EBITDA of INR 127 crore in FY23, showcasing financial resilience and prudent cost management, in contrast to the prevailing trends in the startup ecosystem.

Prateek Maheshwari, Co-founder of Physics Wallah, highlighted the substantial growth in both online and offline spaces. Online categories witnessed a 2.5x increase in student headcount, reaching 23.5 lakh in FY23, while offline student headcount grew to 60,000 enrollments, a 5.5x growth. The company solidified its position in NEET/JEE and emerged as a leading player in categories like UPSC, Commerce, Gate, Government One-day exams, and Skills.

“Our growth was significant both in the online and offline space. Our online categories grew to 2.5x in terms of students headcount from 9 lakh in FY22 to 23.5 lakh in FY23 while our offline student headcount grew to 5.5x touching 60,000 enrolments in FY23. We also continued to cement our position in the NEET/JEE space while establishing ourselves as the topmost player in other categories like UPSC, Commerce, Gate, Government One-day exam, and Skills. We will keep investing in more categories – across study abroad, PG test prep, skills, foundation – applying a similar formula of community, quality, and affordability, to remain in a hyper-growth phase. We are in no hurry to compromise growth for achieving a steady-state margin profile,” said PW’s Co-founder Prateek Maheshwari.

PW’s improved cash reserves, reaching almost INR 750 crore as of March 31, 2023, underscored the company’s financial strength. While total expenses grew to INR 777 crore in FY23, employee costs increased to INR 406 crore, showcasing the company’s robust community-centric approach in acquiring new students.

Physics Wallah strategically expanded into offline and hybrid spaces through Vidyapeeth and Pathshala centers across India. The company’s plans to increase its centers to 120+ in the coming year, aiming to teach 2.5 lakh students by the 2024-25 academic year, reflect its commitment to accessible education.

Alakh Pandey, Founder and CEO of Physics Wallah, reiterated the commitment to reshape India’s education landscape, emphasizing the pivotal role of education in uplifting societies and driving economic growth. The company’s focus on reinvesting free cash flows into the business aligns with its mission to transform lives and families through education.

“Our commitment is clear: We’re investing to reshape India’s education. Education uplifts societies and drives economic growth. We will continue to plough back all the free cash flows generated by the business back into it to serve more students – touch more lives – transform more families,” said PW’s Founder and CEO Alakh Pandey.

Physics Wallah’s consistent success over the past 3+ years highlights the effectiveness of its model, emphasizing genuine dedication to educating and uplifting students, without overlooking the financial strategies employed to achieve these goals.

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