Classroom to Clicks: The Genesis of Genius

Physics Wallah (PW) was founded by Alakh Pandey and Prateek Maheshwari. Alakh Pandey is the Founder and CEO of PW, and Prateek Maheshwari is the Co-Founder.

Before co-founding Physics Wallah, Prateek Maheshwari founded PenPencil in August 2017, a venture he managed for over seven years. In April 2015, he launched NightPanda, a cloud kitchen service in Bengaluru that operated for two years. Prateek worked at Caterpillar Inc. as a Section Manager for approximately three years. He graduated with a Bachelor of Technology (B.Tech) in Mechanical Engineering from the Indian Institute of Technology (Banaras Hindu University), Varanasi. (Prateek Maheshwari)

Alakh Pandey started Physics Wallah as a YouTube channel in 2014 while teaching physics at a coaching center. Frustrated by the high cost of coaching for students, he wanted to make quality education accessible to all. His unique teaching style and engaging content quickly gained popularity, leading to a substantial following on YouTube. The channel’s initial success demonstrated the demand for affordable, high-quality education. (Alakh Pandey)

Seeing the significant impact and potential, Alakh Pandey, along with Prateek Maheshwari, decided to formalize Physics Wallah as an ed-tech company in 2020. Prateek’s background and experience in entrepreneurship perfectly complemented Alakh’s teaching skills. Together they set out to create a platform that offers affordable and comprehensive learning resources. The combined vision led to PW’s rapid growth and expansion into various educational fields.

EdTech-Topia: The Market That’s Making the Grade

The global education technology (EdTech) market is experiencing substantial growth and transformation. In 2023, the market was estimated at USD 142.37 billion. Projections indicate continued expansion, with the market expected to reach USD 348.41 billion by 2030. This growth trajectory represents a compound annual growth rate (CAGR) of 13.4% from 2024 to 2030. The EdTech sector encompasses a broad range of hardware and software technologies aimed at improving the educational experience for students, whether through virtual learning, enhanced classroom instruction, or improved student outcomes. (Grand View Research)

EdTech platforms assist students in overcoming hurdles to receive a comprehensive education by utilizing technology for learning and teaching. Learners are increasingly shifting toward eBooks that can be accessed online from anywhere across the globe. Furthermore, the market is characterized by a high degree of innovation by advancements in technologies such as artificial intelligence, virtual reality, big data, and adaptive learning platforms. The sector is witnessing increased investment from various sources, including venture capitalists and major tech companies, fostering the growth of startups and the expansion of existing EdTech firms.

North America dominated the market with a revenue share of over 36% in 2023. The high share can be attributed to the increased focus on personalized learning and the adoption of digital skills. Europe is expected to witness significant growth over the forecast period with investments in areas such as corporate training, online training, and language learning. The regional market is gaining traction not only with the growing presence in the number of EdTech hubs in London, Oslo, and Helsinki, among others, but also with increasing attention from venture capitalists, governments, and EdTech accelerators. The education technology market in Asia Pacific is anticipated to register the highest CAGR over the forecast period, attributed to the rising prevalence of computing and smart devices among the masses.

PW’s Mission: Making ‘affordable’ the new ‘elite’ in Indian education

Physics Wallah (PW), often lauded as India’s most affordable and accessible ed-tech platform, has rapidly risen to prominence by disrupting the landscape of online education, particularly for students preparing for competitive exams like JEE and NEET. 

The Mission and Vision: Education for All

Physics Wallah operates with a mission: to make quality education accessible to every student, regardless of their socioeconomic background. Alakh Pandey’s own experiences with financial constraints during his education fueled his passion to bridge the gap in access. The vision extends beyond just exam preparation; PW aims to foster a love for learning and cultivate critical thinking skills in students. They want to change the perception of education from a burden to an engaging and enjoyable experience.

Addressing the Pain Points: Affordability and Quality

Physics Wallah directly addresses two significant pain points in the Indian education system: the high cost of coaching and the uneven distribution of quality teaching. Traditional coaching centers, especially those catering to competitive exams, often charge exorbitant fees, effectively excluding students from lower-income families. Moreover, access to experienced and effective teachers is often limited to major cities. PW tackles these problems head-on by providing high-quality video lectures, comprehensive study materials, and doubt-clearing sessions at significantly lower prices than traditional alternatives. By leveraging technology, PW has managed to take education to the remote parts of the country.

The Business and Revenue Model: A Hybrid Approach

Physics Wallah primarily operates on a hybrid business model, blending online and offline learning experiences. While their initial success stemmed from their free YouTube content, the company has expanded its offerings to include paid courses on its app and website. These courses are priced affordably, making them accessible to a wider audience.

The revenue model is primarily driven by the sale of these online courses, test series, and study materials. They also generate revenue from their offline PW Vidyapeeth centers that are growing rapidly. Furthermore, PW has ventured into publishing books and study modules which contribute to their revenue. Investment rounds have also played a crucial role in funding their expansion and technological advancements. PW’s success lies in balancing affordability with sustainability, ensuring they can continue to provide quality education while maintaining a viable business model. This balanced approach has allowed them to scale rapidly and reach millions of students across India.

Breaking the Bank? Not Here: Solving the Pricey Puzzle of Learning With Tools, Talent, and Tapasya

Physics Wallah (PW) has rapidly evolved from a YouTube channel into a comprehensive ed-tech platform, offering a diverse range of products, solutions, and features designed to cater to the varied needs of students across India. At its core, PW provides extensive Online Courses for highly competitive entrance exams like JEE and NEET. These courses are meticulously crafted to provide students with in-depth video lectures delivered by experienced educators, comprehensive study materials covering the entire syllabus, and rigorous test series designed to assess their progress and identify areas for improvement.

Beyond the realm of competitive exam preparation, PW has ventured into skill development with PW Skills. Recognizing the growing demand for skilled professionals in the tech industry, PW Skills offers hybrid courses in cutting-edge technologies such as data science, Java, C++, and full-stack web development. These courses are designed to be accessible, with competitive pricing starting from ₹3,500, making them an attractive option for students seeking to enhance their employability.

Taking a step further in shaping the future of tech education, PW has established the PW Institute of Innovation (PW IOI). This four-year residential program focuses on Computer Science and AI, providing students with a hands-on, industry-relevant curriculum. PW IOI aims to equip students with the skills and knowledge necessary to excel in the rapidly evolving tech landscape.

Innovation is at the heart of PW’s approach, evidenced by the development of Alakh AI, an indigenously built AI education suite. This suite features tools like AI Guru, a 24/7 personal AI tutor providing instant support and guidance, and Sahayak, an AI assistant that personalizes the learning experience for each student. Additionally, PW leverages Generative AI with NCERT Pitara, a tool that creates diverse question types based on NCERT textbooks. This feature helps students identify and address their study gaps in real-time, enhancing their comprehension and retention.

Recognizing the importance of community and engagement, PW offers features like Community Learning, a platform for peer-to-peer interaction and collaboration, and Battleground, an interactive feature that gamifies the learning process, making it more engaging and motivating for students. Understanding the challenges faced by students with limited internet access, PW has introduced Low Data Mode, ensuring uninterrupted learning even in areas with poor connectivity. To further enhance focus and minimize distractions, PW offers LearnOS Tapasya Mode, a dedicated learning environment designed to promote concentration during study sessions.

Most recently, Physics Wallah has expanded into the offline education sector with PW Gurukulam School, an initiative focused on providing quality education for primary classes. This move signifies PW’s commitment to building a strong foundation for young learners and extending its reach across the entire education spectrum.

Brains Meet Bots: How Tech Drives the PW Engine

Physics Wallah’s rapid rise as a leading ed-tech platform is intrinsically linked to its innovative use of technology to enhance the learning experience. From personalized AI tutors to immersive virtual reality environments, Physics Wallah is constantly pushing the boundaries of what’s possible in online education. 

One of the cornerstones of Physics Wallah’s technology is its suite of AI-powered tools. AI Guru, a multimodal personal AI tutor, provides students with 24/7 support, resolving their queries in real-time. With a reported 94% satisfaction rate, AI Guru demonstrates the effectiveness of personalized, on-demand assistance. Complementing this is Sahayak, an AI assistant designed to create personalized learning experiences. By offering adaptive practices and revisions tailored to individual student needs, Sahayak ensures that each student receives the support they require to succeed. Furthermore, AI Grader, another AI-driven tool, provides students with immediate feedback on their answers, allowing for faster learning and improvement.

Physics Wallah is also investing in the development of foundational technologies to enhance the performance and relevance of its AI systems. Project Bharat focuses on creating Small Language Models (SLMs) specifically tailored for educational purposes. These SLMs are designed to improve the accuracy and contextual understanding of AI responses, leading to a more effective and personalized learning experience. Another unique approach is the use of AI to immortalize ‘Star Teachers’. By capturing and replicating the teaching styles of renowned educators, Physics Wallah aims to maintain a consistent quality of instruction across its platform.

Beyond AI, Physics Wallah integrates Adaptive Learning Algorithms that tailor content delivery based on individual student performance and preferences, creating a truly personalized learning path. Furthermore, they are exploring the integration of emerging technologies such as Blockchain Integration for secure certification and credentialing of course completions, enhancing the value and credibility of their educational offerings. The potential of Augmented Reality (AR) and Virtual Reality (VR) is also being investigated to create immersive learning environments, allowing students to interact with complex concepts in a more engaging and intuitive way. Finally, the Data Analytics Dashboard gives students and educators access to insights into learning patterns and progress through advanced data visualization tools. This allows for data-driven decision-making to improve teaching and learning outcomes.

Numbers Don’t Lie: PW’s Impact is Off the Charts

Physics Wallah (PW) has emerged as a major force in India’s ed-tech landscape, redefining accessible and affordable education. Its market influence is underscored by rapid valuation growth, with a Series B funding round in September 2024 raising $210 million and pushing its valuation to $2.8 billion. This milestone highlights growing investor confidence, particularly from major players like GSV Ventures and WestBridge Capital. (Reuters)

PW’s user base has expanded significantly, driven by innovations like Alakh AI, which attracted over 1.5 million users within just two months of its launch in December 2023. This swift adoption reflects PW’s strong connection with learners and its ability to scale impactful technologies. (Financial Express)

In terms of revenue, the company crossed a major milestone by generating over ₹2,000 crore in FY 2023-24, solidifying its position as a revenue leader among Indian ed-tech firms. Its placement-oriented vertical, PW Skills, has further contributed to this impact by securing high-paying jobs for over 1,500 learners—reporting an impressive average salary of ₹22 lakh per annum and a top salary of ₹50 lakh per annum.

PW continues to differentiate itself through a focus on affordability and reach, operating over 120 offline centers across India and offering up to 100% scholarships across various programs. Its inclusive approach has not only helped build trust but also expanded access to quality education for a diverse student base.

With plans to enter the K–12 segment and invest ₹500 crore over three years in the southern market, PW is strategically broadening its footprint. At a time when many competitors face financial headwinds, Physics Wallah stands out for its sustainable model, strong community impact, and consistent growth trajectory.

Partner in Prime: Strategic Collabs and Smart Acquisitions

Physics Wallah (PW) has strategically pursued partnerships, acquisitions, and integrations to expand its reach, enhance its offerings, and solidify its position in the competitive ed-tech landscape. A notable example is the strategic partnership established in June 2023 with Xylem Learning, a Kerala-based ed-tech company, through the acquisition of a 50% stake. This deal, valued at ₹500 crore, is earmarked for investment over three years, aimed at bolstering PW’s presence in South India.  (Entrepreneur)

Xylem Learning, with its established presence, provides free classes to over 3 million students through 30 YouTube channels and caters to more than 1 lakh paid students across various online courses. The collaboration with Xylem seeks to extend PW’s services to Tamil Nadu, Andhra Pradesh, and other southern markets. Moreover, Xylem’s existing infrastructure of 10 tuition centers and a school-integrated program across seven schools offers further avenues for expansion.

Beyond strategic partnerships, PW has strategically acquired companies to enrich its content offerings and expand into new markets. These acquisitions include PrepOnline, a medical entrance exam preparation platform, and Altis Vortex, a publisher of exam preparation books. In December 2022, PW acquired iNeuron, a company specializing in artificial intelligence and data science courses, marking its entry into tech-focused education. Further demonstrating its expansionist ambitions, PW acquired Knowledge Planet, a UAE-based educational company, thus establishing its foothold in the Middle East and North Africa (MENA) region.

PW has also forged collaborations to enhance specific aspects of its platform. Its partnership with FreeCo, a doubt-solving platform, allows for enhanced doubt-resolution services. The integration of EduRev’s extensive practice questions and tests into the PW platform provides students with enriched practice material. Collaborations with technology giants like Amazon Web Services (AWS) leverage cloud computing to enhance the scalability and reliability of its platform, while partnerships with Microsoft for Education utilize tools like Microsoft Teams and Office 365 for improved communication and collaboration. Furthermore, PW’s tie-up with the National Skill Development Corporation (NSDC) allows it to offer skill development courses aligned with national standards, and the integration of Paytm’s payment gateway streamlines fee collection.

Funding Physics: The Formula Behind the Finances

Physics Wallah has secured a total equity funding of $312 million across two funding rounds. The largest single round was a Series B, raising $210 million in September 2024. Before this, the company had raised $102 million in a Series A round in June 2022, achieving unicorn status with a post-money valuation of $1.1 billion and a pre-money valuation of $986 million. These early-stage funding rounds saw participation from 9 investors, comprising 8 institutional investors and 1 angel investor. (Tracxn)

The Series A round was backed by WestBridge Capital, GSV Ventures, MMPL Trust, and Konark Trust. The Series B round saw participation from GSV Ventures, WestBridge Capital, and Lightspeed Venture Partners, along with corporate entities like Hornbill Capital and Setu Aif Trust.

Physics Wallah has demonstrated substantial revenue growth over the past few years. In the fiscal year 2021-22, the company reported revenue of ₹234.7Cr (approximately $28.164 million USD). This figure more than tripled to ₹772.5Cr (approximately $92.7 million USD) in FY 2022-23. The most recent financial year, FY 2023-24, shows an impressive leap to ₹2,015.1Cr (approximately $241.8 million USD) in revenue. For the fiscal year 2021-22, Series A funding round, the revenue multiple was 20.9x with a revenue of ₹47.7M.

Conclusion: When Passion Teaches, The World Listens

Physics Wallah has revolutionized the landscape of accessible and affordable education, particularly for students preparing for competitive exams in India. Through its blend of online and offline resources, including engaging video lectures, comprehensive study materials, and accessible physical coaching centers, Physics Wallah has successfully democratized quality education. Their commitment to providing high-quality content at reasonable prices has empowered countless students from diverse socio-economic backgrounds to pursue their academic dreams. They are truly a leading example of how technology and innovative teaching methods can bridge the gap in educational opportunities.

The success story of Physics Wallah serves as a powerful inspiration for aspiring entrepreneurs and innovators. It demonstrates the potential of identifying unmet needs and creating solutions that are both effective and accessible. If you have an idea that can solve a real-world problem, especially in areas like education, healthcare, or sustainability, now is the time to explore it. Don’t be afraid to challenge existing norms and create something truly impactful. The world needs innovative solutions, and your idea could be the next big thing.

To learn more about how startups develop their ideas and navigate the world of entrepreneurship, we encourage you to explore other insightful articles on Venture Kites. We delve into various aspects of the startup ecosystem, from ideation and funding to marketing and scaling. You will find valuable resources and real-world examples to guide you on your journey. So, keep learning, keep innovating, and turn your vision into reality!