Physics Wallah (PW), founded by Alakh Pandey in 2016, has transformed from a humble YouTube channel focused on teaching physics for competitive exams into a leading edtech platform in India. Headquartered in Noida, Uttar Pradesh, PW has become a beacon of affordable education and high-quality education, catering to students from classes 6 to 12 and those preparing for competitive exams such as JEE, NEET, GATE, UPSC, and more. Valued at $2.8 billion as of September 2024, PW has achieved unicorn status and is preparing for a $530 million IPO in March 2025. This article explores PW’s financial performance for the 2024-25 academic year and its profound impact on Indian education, emphasizing its role in democratizing learning for millions.
Financial Performance in 2024-25
Revenue Growth and Losses in FY24
In the financial year 2023-24 (FY24), Physics Wallah reported a remarkable 161% increase in operating revenue growth, reaching Rs 1,940 crore from Rs 744 crore in FY23. This growth was driven by its online learning business, which contributes approximately 60% of total revenue, with the offline centers sector accounting for the remaining 40%. However, the company faced a significant net loss of Rs 1,131.2 crore in FY24, a 13.5X increase from Rs 84.06 crore in FY23, primarily due to non-cash expenses such as the change in fair value of Compulsorily Convertible Preference Shares (CCPS) costing Rs 756 crore and increased ESOP and employee-related expenses (Inc42). Notably, PW revised its FY23 figures, reporting a loss instead of the previously stated Rs 8.9 crore profit due to changes in accounting standards.
Projections for 2024-25
For the academic year 2024-25, Physics Wallah has reported over 100% growth in its online learning business, with its annual flagship event, Vishwas Diwas, generating over Rs 100 crore in revenue within 12 days through 200,000 enrollments. The company aims to double its revenue growth this year, leveraging its 27 lakh paid app users and increasing internet penetration in India. PW’s co-founder, Prateek Maheshwari, indicated that the company has started generating positive cash flow in the first and second quarters of 2024-25, a significant improvement from a negative 18% cash flow previously. The company expects FY25 to be its most profitable year in EBITDA terms.
Funding and Valuation
In September 2024, PW raised $210 million in a Series B funding round led by Hornbill Capital, with participation from Lightspeed Venture Partners, WestBridge, and GSV, more than doubling its valuation from $1.1 billion to $2.8 billion (Reuters). This funding will support PW’s expansion into K-12 education, offline centers growth, and potential acquisitions (Business Standard).
| Financial Metric | FY23 | FY24 | 2024-25 (Projected) |
|---|---|---|---|
| Operating Revenue Growth (Rs Crore) | 744 | 1,940 | Aiming to double |
| Net Profit/Loss (Rs Crore) | -84.06 (revised) | -1,131.2 | Positive cash flow reported |
| Valuation ($ Billion) | 1.1 | 2.8 | 2.8 (as of Sep 2024) |
Impact on Indian Education
Physics Wallah has significantly reshaped Indian education by prioritizing affordable education, accessibility, and quality. Below are the key ways PW is contributing to Indian education:
1. Affordable Education and Accessibility
PW’s mission is to provide high-quality education at minimal cost, challenging the commercialization of coaching for engineering and medical aspirants. Unlike traditional institutes, PW offers courses at significantly lower prices, making education accessible to students from diverse socioeconomic backgrounds. With over 3.5 million registered students and 15 million app users, PW reaches 98% of India’s pin codes (Greater Kashmir).
2. Comprehensive Learning Resources
PW provides a robust pedagogical structure, including:
- Live and Recorded Classes: Daily live interactive classes and recorded lectures for flexible online learning.
- Doubt-Solving: 24×7 doubt resolution to support students.
- Extensive Materials: Over 10 million tests, sample papers, and notes, including NCERT solutions, RD Sharma solutions, and previous year papers for JEE, NEET, and BITSAT (PW Official Website).
- Offline Centers and Hybrid Centers: As of September 2024, PW operates 187 offline centers and hybrid centers (79 Vidyapeeth and 48 Pathshala), blending traditional and digital learning (The Financial Express).
3. Success in Competitive Exams
PW has a proven track record of helping students excel in competitive exams. Notable achievements include:
- NEET UG 2024: Tathagat Awatar secured AIR 1, attributing success to PW’s Lakshya and Yakeen NEET batches (PW Official Website).
- GATE 2024: Raja Majhi achieved AIR 1.
- JEE Advanced 2024: Sushant Padha secured AIR 52.
- UPSC CSE 2023: Anmol Rathore achieved AIR 7 (PW Official Website).
These results underscore PW’s effectiveness in preparing students for high-stakes exams.
4. Diverse Course Offerings
Beyond JEE and NEET, PW offers courses for various exams, including GATE, UPSC, CA, SSC, Banking, UGC NET, and more. Its flagship batches like Lakshya, Udaan, and Arjuna cater to different academic levels and exam categories, ensuring comprehensive coverage (PW Official Website).
5. Free Educational Content
PW’s 130+ YouTube channels, with over 78 lakh subscribers, provide free quality education in five vernacular regional languages, reaching 46 million students (The PIE News). This initiative ensures that even students unable to afford paid courses can access high-quality content.
6. Regional Languages Support
In 2025, PW launched Project Bharat, offering AI-powered tutoring for NEET and JEE courses in five regional languages (Marathi, Bengali, Gujarati, Kannada, and English). This initiative targets rural and non-Hindi/English-speaking students, bridging language barriers and promoting inclusivity (Elets Digital Learning).
7. AI-Powered Tutoring
PW’s collaboration with Microsoft Research has led to the development of Alakh AI, an AI-powered tutoring suite using OpenAI’s GPT-4o model via Microsoft Azure. Features like AI Guru and the Smart Doubt Engine enhance tutoring accuracy and affordability, transforming the learning experience (Microsoft Research).
8. Empowering Rural and Diverse Learners
PW’s hybrid model and regional languages courses empower students in rural areas, where traditional coaching is often inaccessible. By providing state board-specific materials (e.g., Uttar Pradesh, Bihar), PW ensures relevance across diverse educational systems (PW Official Website).
Challenges and Future Outlook
Despite its growth, PW faces challenges, including significant FY24 losses due to non-cash expenses and the competitive edtech landscape. However, its focus on profitability in 2024-25, expansion into K-12 education, Nekton’s Law education, and strategic partnerships like Microsoft Research position PW for continued success. The planned $530 million IPO vested interests in PW.
Conclusion
Physics Wallah has redefined Indian education by making quality learning affordable and accessible to millions. Its financial growth, with a projected revenue growth doubling in 2024-25, reflects its strong market position. Through innovative initiatives like Project Bharat, AI-powered tutoring, and extensive free content, PW is bridging educational gaps, empowering students across socioeconomic and linguistic divides, and shaping a more inclusive future for Indian education.
