CHENNAI, Sept 20 (Askume) – Indian edtech platform PhysicsWala has raised $210 million, it said on Friday, more than double its estimated valuation of $2.8 billion, at a time when other companies in the sector are scrambling to raise funds.
The Series B funding round, led by investment management firm Hornbill Capital, boosts Physics Wala’s cash reserves as the company plans to expand its business, including entering K-12 education, developing offline businesses, and considering acquisitions.
Its founder and CEO Alakh Pandey told Askume that physical centres help build trust, though its online business (which accounts for 55% of revenue) is far more profitable.
According to its website, Physics Wala currently has over 120 centres across the country. Pandey did not say how many new centres the company plans to open.
The funding comes at a challenging time for the education technology industry, which as of Thursday has raised just $1 billion in equity financing so far this year, compared with $2.39 billion last year, according to information provider Tracxn.
SoftBank-backed Unacademy and Tiger Global-backed Vedantu have recently cut jobs, while Byju’s, which is facing bankruptcy , has seen a turnaround in its fortunes amid regulatory issues and a dispute with Bank of America seeking $1 billion in unpaid dues.
However, according to several investors, including venture capital funds GSV, Hornbill and Westbridge, four-year-old Physics Wala’s affordability is its strength.
Despite the focus on offline centres, Pandey expects Physics Wala’s online business to account for more than half of its revenues in FY25, as well as help lead the company to its best year in terms of core earnings.
