EdTech Firm Physics Wallah Eyes $150 Million Funding Round Led by Lightspeed Venture
EdTech firm Physics Wallah is reportedly preparing for a $150 million funding round led by Lightspeed Venture Partners. According to the term sheet issued by Lightspeed, the company’s pre-money valuation is projected to reach $2.6 billion.
The investment is expected to be primarily directed towards primary funding, though there may be some secondary investments as well. If the deal is finalized, Physics Wallah’s valuation could nearly double from $1.1 billion in 2022 to approximately $2.7-2.8 billion (pre-money).
This potential deal is notable as investment in the EdTech sector has waned since the pandemic, which saw a surge of interest. Lightspeed Venture Partners, which has previously invested in EdTech companies like Bhanzu, Teachmint, and India’s largest EdTech decacorn Byju’s, is demonstrating continued confidence in the sector despite recent challenges.
Physics Wallah, co-founded in 2020 by YouTube educator Alakh Pandey and Prateek Maheshwari, initially started as a test-prep platform. Since then, it has expanded its services to include upskilling, K-12 education, and offline tuition centers.
The company secured its first round of external funding in 2022, raising $100 million from private equity firms WestBridge Capital and US-based GSV Ventures. Within two years of its inception, Physics Wallah achieved unicorn status.
The firm has experienced significant revenue growth, with its earnings rising from Rs 25 crore in FY21 to Rs 789 crore in FY23. Revenue continued to surge, reaching approximately Rs 1,800 crore in FY24. For FY25, the company is targeting revenue exceeding Rs 2,900 crore.
However, Physics Wallah’s aggressive expansion has impacted its profitability. The company’s net income fell to Rs 6 crore in FY23 from Rs 100 crore in FY22, reflecting the financial strain of its rapid growth and investment activities.
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