PhysicsWallah Achieves 3.4X Revenue Growth and Profitability Surge in FY23


Three points you will get to know in this article:

  1. PhysicsWallah soared with a 3.4X revenue surge, hitting Rs 798 crore in FY 2023, while extending its educational impact to nearly 24 lakh students.
  2. Embracing diverse education and financial strategies, the company achieved an adjusted EBITDA of Rs 127 crore.
  3. Despite expenses and layoffs, PhysicsWallah secured $100 million in funding, acquired key entities, cementing its position as a leading player in the edtech sector.

In the fiscal year 2023, the EdTech giant PhysicsWallah demonstrated commendable profitability, witnessing a remarkable 3.4X surge in its total revenue, reaching Rs 798 crore, as disclosed by the financial data provided by the Noida-based company.

Throughout the fiscal year concluding in March 2023, the firm experienced a substantial rise in revenue from operations, reaching Rs 771.76 crore. This marked a significant ascent from Rs 232.47 crore in the preceding fiscal year and Rs 24.6 crore in FY21, as outlined in the company’s official statement.

Exponential Growth in Student Enrollment

Remarkably, PhysicsWallah extended its educational reach to nearly 24 lakh students across diverse exam categories (excluding acquisitions), a notable increase from the previous year’s 9 lakh students. This surge in student enrollment can be attributed to the company’s expansion into new exam categories, emphasis on skill development, and a notable uptick in offline student admissions.

The company’s success in FY23 is indicative of its strategic efforts in diversifying its educational offerings and tapping into new markets, resulting in a robust financial performance and a significant expansion of its student base.

Adjusted EBITDA and Financial Performance

In the fiscal year 2023, the company recorded an adjusted EBITDA (earnings before income, tax, depreciation, and amortization) of Rs 127 crore, factoring in adjustments for ESOP costs, LER, and a one-time inventory provisioning. This figure compares to Rs 134 crore in the previous fiscal year, FY22.

Prateek Maheshwari, one of PW’s co-founders, enthusiastically remarked, “Our growth has been truly remarkable, spanning both the digital and physical realms. In the online sphere, we experienced a staggering 2.5x increase in student headcount, soaring from 9 lakh in FY22 to an impressive 23.5 lakh in FY23. Simultaneously, our offline student enrollment skyrocketed by 5.5x, reaching a noteworthy 60,000 in FY23.”

Maheshwari emphasized the company’s unwavering commitment to solidifying its presence in the competitive NEET/JEE landscape. Furthermore, he highlighted the company’s position as a leading player in diverse sectors such as UPSC, commerce, Gate, government one-day exams, and skills.

With a distinctive blend of online and offline success, PW continues to carve out its niche in the educational domain, affirming its status as a prominent force in various academic arenas.

Company Background and Mission

Established in 2016 by Alakh Pandey and later joined by Maheshwari, PhysicsWallah is dedicated to providing a transformative educational experience. The platform offers a range of online and offline courses, along with comprehensive study materials tailored for JEE, NEET, and various engineering entrance and state board exams. Students can benefit from live classes, engaging video lectures, meticulously crafted test series, and dynamic exercises designed specifically for the mentioned exams.

In the fiscal year 2023, PhysicsWallah’s total expenses surged to Rs 777 crore, encompassing non-cash expenses such as ESOP, LER, and Inventory provisions—significantly escalating from Rs 103 crore in the preceding year. Notably, employee costs also witnessed substantial growth, reaching Rs 406 crore, inclusive of ESOP benefits, which were absent in FY22, compared to Rs 42 crore in the previous year.

Alakh Pandey, the visionary founder and CEO of PhysicsWallah, passionately expressed, “Education serves as the catalyst for societal uplift and drives economic growth. Our commitment is unwavering—we will reinvest all the free cash flows generated by the business to expand our impact, reaching more students, touching more lives, and transforming more families.”

Strategic Expansion and Acquisitions

In the fiscal year of 2023, PW successfully secured $100 million in funding and forged strategic partnerships with eight prominent companies. Additionally, it made noteworthy acquisitions, including Xylem Learning, PrepOnline, and Altis Vortex, solidifying its presence in the unicorn club.

Reinvestment and Impactful Partnerships

In a recent development, PW unfortunately had to part ways with 120-150 team members, marking the first instance of layoffs at this edtech company. According to the company, these layoffs were carried out as part of routine performance assessments conducted during both mid-term and end-term cycles. This challenging decision was made with the company’s long-term goals and commitment to sustained excellence in mind.

In the fiscal year 2023, PhysicsWallah achieved significant milestones, experiencing a 3.4X surge in total revenue, reaching Rs 798 crore. The company extended its educational reach to nearly 24 lakh students, emphasizing skill development and expanding into new exam categories. The adjusted EBITDA stood at Rs 127 crore, reflecting robust financial performance. Despite escalating expenses, including substantial employee costs, PhysicsWallah’s unwavering commitment to education and impact was evident. Successfully securing $100 million in funding, strategic partnerships, and notable acquisitions solidified its position in the unicorn club.

SA Team

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