Edtech giant Physics Wallah raising $26M at $3.7B valuation: Report
What's the story
Leading edtech start-up Physics Wallah is raising $22-26 million in a secondary funding round, as per HT Mint.
The investment is being led by WestBridge Capital, an existing investor in the company.
The deal would significantly boost Physics Wallah's valuation to $3.7 billion, a whopping 30% increase in just six months from its last valuation of $2.8 billion.
Funding details
Secondary funding round and employee stock options
The secondary funding round entails the sale of existing stocks by investors/employees to new or existing investors, without the firm issuing new shares or raising fresh capital.
As part of the transaction, Physics Wallah is expected to offer a buyback of stock options for around 1,000 employees.
The deal is set to boost the company's market value significantly.
IPO plans
Physics Wallah's journey toward public listing
Physics Wallah is preparing for a public listing later this year and is tipped to file its draft papers next month.
The move comes after a successful funding round in September that raised $210 million, led by Hornbill Capital Advisors and Lightspeed Venture Partners.
The round not only more than doubled its valuation but also hinted at the company's IPO ambitions.
Growth trajectory
Rapid expansion and financial performance
Over the last two years, Physics Wallah has aggressively pursued growth by entering new business domains and making strategic acquisitions.
The company's consolidated revenue almost tripled to ₹2,015 crore in the fiscal year ending March 31.
However, the rapid expansion also resulted in a wider loss owing to a spike in expenses.
Company history
Journey from YouTube to unicorn status
Physics Wallah was first launched as a YouTube channel in 2016 by co-founders Alakh Pandey and Prateek Maheshwari, before officially becoming an edtech start-up in 2020.
The start-up achieved unicorn status (a billion-dollar company), with its first funding round two years ago.
Till date, Physics Wallah has raised over $300 million in funding.