Indian ed-tech startup Physics Wallah announced on Friday that it has raised $210 million as it seeks to expand its operations, including through acquisitions, amid challenges in the sector.
The funding round, led by Hornbill Capital with participation from Lightspeed Venture Partners, GSV, and WestBridge, values the company at $2.8 billion, a sharp increase from its previous valuation of $1.1 billion.
Founded in 2020, Physics Wallah is one of India’s many ed-tech companies, offering free and paid courses for various competitive exams. The company sets itself apart by providing courses that typically cost less than $50, aiming to make education accessible to students in economically disadvantaged regions of the country.
“We are not built for 1% of the country or 1% of the world, we are built for the remaining 99%, those who cannot go to these fancy coaching classes … now we enable different kinds of students,” Alakh Pandey, CEO of Physics Wallah, told CNBC in an interview.
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The company operates on a freemium business model, offering free courses on YouTube. For students seeking additional features like homework and tests, a paid option is available.
The company reported a 250% year-on-year revenue growth for the fiscal year ending March 2024, and Pandey noted that he anticipates achieving the “highest absolute” EBITDA in the current fiscal year. EBITDA, which stands for earnings before interest, taxes, depreciation, and amortization, is a common profitability measure used by businesses.
Pandey indicated that the company is open to acquisitions, particularly if they provide access to new content and users.
“Consolidation, we are open to it if it’s based on different geography that we cannot serve to, and if it caters to content and community first,” Pandey said.
The CEO pointed to the equity investments it has already made. Last year, Physics Wallah brought a 50% stake in Xylem Learning, an ed-tech company headquartered in Kerala in south India.
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