Edtech unicorn PhysicsWallah demonstrated robust financial performance in FY23, maintaining profitability with a remarkable 3.4 times surge in total revenue, reaching INR 798 crore, as disclosed in the financial report by the Noida-based firm.
The revenue from operations witnessed a substantial increase, reaching INR 771.76 crore in the fiscal year ending March 2023, compared to INR 232.47 crore in the previous fiscal year and INR 24.6 crore in FY21.
PhysicsWallah expanded its reach, providing education to nearly 24 lakh students across various exam categories, a significant rise from over 9 lakh students the previous year. The growth in student numbers resulted from expansions into new exam categories, skilling initiatives, and an upsurge in offline student enrolments.
In FY23, the company reported an adjusted EBITDA of INR 127 crore, adjusting for ESOP costs, LER, and one-time inventory provisioning, slightly down from INR 134 crore in FY22.
Co-founder Prateek Maheshwari highlighted the significant growth in both online and offline spaces, with online categories experiencing a 2.5x increase in student headcount and offline enrolments growing 5.5x to touch 60,000 in FY23.
PhysicsWallah has solidified its position in the NEET/JEE space and emerged as a leading player in other categories such as UPSC, commerce, Gate, government one-day exams, and skills.
Total expenses for PW in FY23 amounted to INR 777 crore, including non-cash expenses like ESOP, LER, and inventory provisions, witnessing substantial growth from INR 103 crore in the previous year. Employee costs grew to INR 406 crore, including ESOP benefits, compared to INR 42 crore in the prior year.
CEO Alakh Pandey emphasized the company’s commitment to reinvesting generated free cash flows back into the business to expand its reach, serve more students, and make a positive impact on families and societies.
In FY23, PhysicsWallah secured $100 million in funding, establishing collaborations with eight companies and acquiring Xylem Learning, PrepOnline, and Altis Vortex, further solidifying its position in the edtech sector.
Despite these positive developments, the company recently underwent a workforce reduction, with 120-150 employees laid off as part of regular performance assessments through mid-term and end-term cycles.
