Fri Sep 20 06:30:01 UTC 2024: ## Indian Ed-tech Startup Physics Wallah Raises $210 Million Amid Sector Troubles

**New Delhi, India** – Physics Wallah, a leading Indian education technology (ed-tech) startup, announced on Friday it has secured $210 million in funding, valuing the company at $2.8 billion. The investment, led by Hornbill Capital and joined by Lightspeed Venture Partners, GSV and WestBridge, comes amidst a turbulent period for the Indian ed-tech sector.

Physics Wallah, founded in 2020, distinguishes itself by offering affordable courses, typically costing less than $50, making them accessible to students from less affluent backgrounds. “We are not built for the 1% of the country or the world,” CEO Alakh Pandey told CNBC, “We are built for the remaining 99%.”

The company utilizes a freemium model, providing free courses on YouTube and offering paid features like homework and tests for students seeking more. Physics Wallah reported a 250% year-on-year revenue growth in the fiscal year ended March 2024 and expects record EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in the current fiscal year.

Pandey emphasized the company’s focus on content quality and student outcomes, a stark contrast to some ed-tech companies that prioritized valuations and aggressive marketing. “Education is different,” Pandey stated, “You have to accept that you are actually working to change the life of students.”

Physics Wallah is looking to expand through strategic acquisitions that enhance content and reach new user demographics. Last year, the company acquired a 50% stake in Xylem Learning, an ed-tech company based in Kerala, southern India.

Co-founder Prateek Maheshwari highlighted the market’s continued growth despite some recent setbacks. “The learners are increasing year-on-year,” he said, pointing to the rising demand for both online and offline learning, especially in rural areas.

Despite the recent challenges, Physics Wallah remains optimistic about its future. An initial public offering (IPO) is on the horizon, although a specific timeline has not been disclosed.

The company’s success and its commitment to affordable education offer a ray of hope for the Indian ed-tech sector, which is navigating through a period of consolidation and renewed focus on sustainable growth.

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