Physics Wallah (PW), which provides engineering entrance test coaching, announced it has successfully collected $210 million at a $2.8 billion valuation in a Series B investment round, bucking the funding slowdown that has severely affected the edtech industry.
PW was founded by Alakh Pandey and Prateek Maheshwari. Hornbill Capital, an Asia hedge fund, led the investment round, while Lightspeed Venture Partners, as well as GSV and WestBridge, two of PW’s current investors, made major contributions.
This latest round of funding comes two years after the company raised $100 million in its Series A round from GSV Ventures and Westbridge, propelling the test-prep edtech startup into India’s exclusive unicorn club.
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The money is given to the Indian edtech sector at a time when it is severely lacking in capital due to investors’ cautious attitude toward the field. Because of this, Indian edtech companies are being forced to cut costs and even take harsh measures like layoffs in order to maintain their profitability.
In contrast to 2021 and the first part of 2022, the private market environment and the present fundraising procedure have undergone substantial change. In those days, private markets were far more lax when it came to values. But, high-quality assets continue to attract a lot of attention in the current market, particularly from companies that have solid core values. Declared Maheshwari during a conversation with DealStreetAsia.
PW, Vikram Bhardwaj, commented on the fundraising process, said “In 2022, raising funds was relatively straightforward.” But, this time, things are different. From the standpoint of an investor, the levels of due diligence have grown. Process orientation and company governance are being scrutinized more closely and with more emphasis these days.”
About Physics Wallah
Physics Wallah (PW), India’s leading EdTech unicorn, was founded in 2020 by Alakh Pandey (Founder and CEO) and Prateek Maheshwari (Co-Founder). Headquartered in Noida, Uttar Pradesh, PW is democratising education at scale across India through online, offline, and hybrid platforms, reaching 98% of the country’s pin codes. Initially launched as a YouTube channel in 2014, PW has grown exponentially, now offering free quality education to over 4.6 crore students through its 112+ YouTube channels in 5 vernacular languages. The PW app has been downloaded 3+ crore times, and the company has over 55+ lakh paid students.
