PhysicsWallah is an edtech platform that secured $210 million from Hornbill Capital during its series B funding round. The funding round had the participation of several investors including GGSV, Lightspeed Venture Partners, and WestBridge. The startup plans to use these fresh proceeds to enhance its platform, scale its operations, increase its offerings, and develop its market presence.
The company aims for inorganic expansion, improving its content, and entering the K-12 market segment while merging with community-based education platforms. This will be the third funding round for this startup in the past two years. This edtech startup previously secured 150 million USD in its fresh funding round from GSV Ventures and Westbridge.
After this round, the company reported a 2.5 times increase in its valuation to $2.8 billion. The startup data intelligence platform, the kredible mentioned that WestBridge holds the largest external stake with 2.4 percent followed by GSV ventures with 1.44 percent, and the two co-founders account for the remaining 86.54 percent stake of the company.
Physics Wallah provides an online platform offering coaching services for IIT/JEE, data science, Management, Law, and Technology related fields. The company also has offline educational institutes, schools, colleges, and upskilling programs for students across India. The startup claims to have offered education to over 46 million students through its 112 YouTube channels in five languages. The company reported the app was downloaded 30 million times with 5.5 million paid students. The online teaching platform offered by the start-up uses advanced technology to provide the best learning experience. The edtech firm aims to expand its offline brand presence in multiple cities across India.
The Edtech startup posted a 3.3 times increase in its revenue to Rs 779 crore in FY23. However, the profit saw 90 percent decrease to Rs 8.87 crore in the same duration. The company expects revenue of around Rs 2,000 crore for FY24. The development came just after the edtech startups saw increased investor interest. The data from thekredible mentioned that the startups in this sector have raised around $160 million across 27 deals till now from the start of this year. The edtech sector posted overall funding of 456 million USD in 2023. Physic Wallah faces competition with other online coaching platforms such as Byjus, GoStudent, and Vedantu.
Conclusion :
Edtech startup Physics Wallah secured 210 million USD in its series B funding round from Hornbill Capital with the participation of GSV, WestBridge, and Lightspeed Venture Partners. The startup plans to use these fresh proceeds to scale its operations, enter into the K-12 segment, expand its network, and increase its customer base.
This will be the third round of investment of this Noida-based startup in the last two years. Before this round, WestBridge was the largest stakeholder of the firm with a 2.4 percent stake while the co-founders accounted for 86.54 percent of the company. Following this round, the startup reported a valuation of $2.8 billion.
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