IPO bound Edtech unicorn Physics Wallah (PW) has invited major investment banks for their initial public offer (IPO) pitch and the first round of discussions to lead the way start tomorrow, co-founder Prateek Maheshwari told Outlook Business.
“The market is positive and firstly we want to learn about everything required for the IPO, we are keenly observing it so we can get listed by FY25. IPO is surely the next stop for us now," he said.
This comes after the Noida-based company secured $210mn in a Series B funding in a combination of primary and secondary transactions, led by VC firms Hornbill Capital, Lightspeed Ventures Partners, WestBridge and GSV, at a valuation of $2.8bn, which is a significant spike from its last valuation of $1.1bn.
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The major funding for PW comes at a time when the edtech sector on a whole is facing troubles in funding, as well as when edtech pioneer Byju’s is going through insolvency proceedings.
“We have been criticized for experimenting a lot, however, the best thing our investors have liked about us is the fact that our business is not targeting the top 5 per cent student population of India, rather the rest of 80 per cent, which is the mass market and is not affected by saturation yet,” Maheshwari said. He also added that after the success of the various verticals launched by PW, it is now doubling down on investments on those vertices as well.
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He also confirmed that PW plans to hire another 1500-2000 mid-management talent by the end of March 2025. These hirings will be done for both its online and offline business, also known as PW Vidyapeeth centers.
Physics Wallah posted a revenue of Rs 772 crore in FY23, that is a 3x increase from the previous year. FY24 financials are yet to be filed with the Registrar of Companies. The company has forecasted a revenue of Rs 2,400 for FY24 and is also aiming for its highest Ebitda in FY25.
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