Physics Wallah Set to Raise $150 Million from Lightspeed Ventures

Edtech firm Physics Wallah is gearing up for a $150 million funding led by Lightspeed Venture as per a report by YourStory.

As per the term sheet issued by Lightspeed Ventures, Physics pre-money valuation will reach $2.6 billion.

It is said that the investment is largely expected to be in Primary funds but the investors may look at secondaries as well. 

If the deal does go through, Physics Wallah will see its valuation double from $1.1 billion in 2022 to over $2.7-2.8 billion (pre-money value).

This is a rare instance of investors investing in edtech sector which was highly sought after during the pandemic. Lightspeed has invested in edtech companies such as Bhanzu, Teachmint and India’s biggest edtech decacorn Byju’s, which was once valued at $22 billion.

The edtech sector has faced a lot of challenges after pandemic receded and students returned to physical classes for coaching.

Physics Wallah was co-founded in 2020 by YouTube teacher Alakh Pandey and Prateek Maheshwari. Initially, it began as a test-prep platform before expanding its offerings to upskilling, K-12 and offline tuition centres.

It raised its first round of external funding of $100 million in 2022 from private equity firms West Bridge and US-based tech investor GSV Ventures. It became India’s unicorn within two years of its inception.

The company saw its revenue increase substantially from Rs 25 crore in FY21 to Rs 789 crore in FY23. The company’s revenue more than doubled to around Rs 1,800 crore in FY24.

For FY25, the company is targeting a revenue of over Rs 2,900 crore as per the report.

The edtech firm's bottom line has taken a hit after its aggressive expansion through external funding. The company slipped into losses as its profit dropped to Rs 6 crore in FY23 from Rs 100 crore in FY22.