Physics Wallah, a prominent edtech startup in India, has been gaining significant attention for its profitable status and rapid growth. The company, valued at over $1 billion and the only profitable unicorn in the Indian edtech sector, is aiming to achieve remarkable financial results in the upcoming fiscal year (2023–24, or FY24).
Impressive Revenue Growth and Expansion Plans
In the previous financial year (2022–23), Physics Wallah generated Rs 780 crore in revenue. For FY24, the company has set an ambitious target of reaching a total revenue of Rs 2,400 crore at the group level, with the core Physics Wallah business contributing around Rs 1,900 crore. The remaining Rs 500 crore is expected to come from inorganic expansion through partnerships and acquisitions.
Diverse Business Verticals and Growth Trends
Physics Wallah has demonstrated remarkable growth across various business verticals. The online segment has experienced a 100 percent growth rate, while the offline vidyapeeths (educational centers) have expanded by 150 percent, significantly contributing to the overall revenue targets. The company is projecting an impressive 250 percent overall growth at the group level for the current year.
Strategic Acquisitions and Measured Expansion
Physics Wallah’s approach to expansion includes strategic acquisitions and measured growth. The company secured its unicorn status in 2022 by raising $100 million in Series A funding from investors such as WestBridge Capital and GSV Ventures. Approximately $40 million of this funding was allocated for acquisitions, and Physics Wallah has completed nine acquisitions to date, including Kerala-based Xylem and United Arab Emirates-based Knowledge Planet.
The company plans to continue integrating these acquisitions into its business and expand its offline centers across various cities, targeting a total presence in 108 cities. Despite having a significant online user base, the offline centers contribute approximately 40 percent of the overall revenue, highlighting the importance of offline presence for certain student segments.
Profitability and Focus on Student Experience
Physics Wallah’s unique differentiation in the edtech sector lies in its profitability. The company has maintained a strong focus on student experience, leading to organic growth without excessive spending on marketing and branding. This customer-centric approach has been key to its success. Prateek Maheshwari, co-founder of Physics Wallah, emphasizes that their detailed operating plan, prioritizing customer satisfaction, growth, and profitability, is a fundamental part of the company’s culture and governance structure.
Flat Organizational Structure and Future Plans
Physics Wallah has maintained a flat hierarchy and has been cautious not to overhire, unlike some of its competitors. The company currently has no funding requirements and is aiming for a public listing within the next three years, showcasing its strong financial position and long-term vision in the edtech space.
