Edtech startup Physics Wallah is poised to secure ₹230 crore ($22-26 million) in a secondary funding round led by existing investor Westbridge Capital, which will elevate its valuation to $3.7 billion, up from $2.8 billion just six months prior. The company is also expected to initiate a buyback of stock options for approximately 1,000 employees.
This secondary transaction involves the sale of existing shares by investors or employees to new or existing investors, without the issuance of new shares or raising additional capital. Based in Noida, Physics Wallah is preparing for an IPO later this year, with plans to file draft papers next month. This funding round follows a $210 million investment in September, led by Hornbill Capital Advisors and Lightspeed Venture Partners, marking the company’s second fundraising effort during a challenging period for India’s edtech sector.
Physics Wallah has experienced aggressive growth over the past two years, expanding into new business segments and making acquisitions. Its consolidated revenue nearly tripled to ₹2,015 crore in the fiscal year ending March 31, although losses increased due to rising expenses. Founded in 2016 as a YouTube channel by Alakh Pandey and Prateek Maheshwari, Physics Wallah officially launched as an edtech startup in 2020 and became a unicorn with its first funding round two years ago, raising over $300 million to date.
The co-founders retain a 77.4% ownership stake in the company, while Westbridge Capital holds a 6.3% stake. Last year, Physics Wallah acquired Xylem Learning, an AI-based platform for entrance exam preparation, and Knowledge Planet, which offers test preparation services to non-resident Indians. In 2022, it also acquired FreeCo, a doubt-solving platform, marking its first acquisition.
