Edtech Unicorn Physics Wallah (PW) Secures $210 Million in Series B Funding

• 26 Sep 2024

Edtech Unicorn Physics Wallah (PW) Secures $210 Million in Series B Funding

 

Edtech unicorn Physics Wallah (PW) has successfully closed its Series B funding round, raising $210 million through a mix of primary and secondary transactions.

 

The round was led by Hornbill Capital, with notable participation from Lightspeed Venture Partners, alongside existing investors GSV Ventures and WestBridge Capital. This funding boosts the company’s post-money valuation to $2.8 billion, marking a significant increase from its previous valuation of $1.1 billion.

 

Founded in 2016 by teacher-turned-entrepreneur Alakh Pandey, the profitable edtech firm had earlier raised $102 million in its initial funding round from WestBridge and GSV Ventures. This latest round represents one of the largest primary capital raises in the edtech sector recently, indicating a resurgence of investor confidence after a prolonged downturn. This trend comes as educational institutions are blending traditional learning with digital innovations.

 

Investment in the edtech sector saw a drastic decline in 2023, plummeting to $321 million from a peak of $4.1 billion in 2021. However, this recent funding signals a promising recovery. According to a report by Tracxn, year-to-date funding in the Indian edtech market has reached $215 million, reflecting a modest rebound from the $321 million raised by startups last year.

 

The decline in funding was largely attributed to the reopening of educational institutions, which reduced demand for online learning, as well as governance issues and financial challenges faced by major players like Byju’s, which shook investor confidence across the sector.

 

Despite this uptick, the edtech industry still has significant ground to cover; funding in 2023 is down 87 percent compared to the $2.4 billion raised in 2022, and the sector’s peak was at $4.1 billion in 2021.