New Delhi: Edtech unicorns PhysicsWallah reach at Rs.2,000 crores revenue mark during the financial year ended March 31, 2024, but it losses widened in a big way. The Noida based company saw its operating grow by significant 160% to Rs.1,940 crore in FY24, from Rs.744 crore in FY23. Its consolidated net loss ballooned by nearly to 13.5 times to Rs.1,131 crore from Rs.84 crore years ago due to higher wage bill. The company also posted a huge jump in miscellaneous expenses to Rs.1,453 crore from Rs.170 crore.
According to the company, this increase comprises non-cash expenses pertaining to the revaluation of its preference shares. This led to a one time cost of Rs.756 crore in fiscal 2024, the company had reported a net profit of Rs16 crore for FY23 but it has now restated its financials to report a net loss of Rs.84 crore of year. Total expenses went up to Rs.3,279 crore in FY24, compared to Rs.862 crore a year earlier, regulatory filings sourced for Tofler showed. In 2023-24 the company spent Rs.1,158 crore on employee benefits, while incurring other expenses of Rs1,659 crore. It has however cut down on its advertising and promotional expenses by 70% to Rs.19 crore, from Rs.67 crore in the previous fiscal.
Earning of PhysicsWallah:
PhsycisWallah generates revenue primarily from coaching classes, hostel service, server income, and related sales of products like study material, merchandise, tablets, and panel screen. Over 90% of revenue came from the sale of educational services and while other came from the sale of products, the Edtech firm focuses on the competitive exams preparation segments.
It closed a $210 million financing round on September 20 led on Asian hedge fund Hornbill capital with significant participation from venture capital fund Lightspeed venture parents, this round valued Edtech major at $2.8 billion. In 2022 the startup raised at maiden institutional round of $100 million at a valuation of $1.1 billion. In the prep segment, it competes like Biju’s owned Akash institute, Bodhi tree backed Allen Career institute, and soft bank backed unacademy.
PhysicsWallah Rise:
Founded by Alakh Pandey and Parteek Maheshwari, 55% of Business comes from online centres and while the rest of through comes from offline centres. Its offline centres started in year 2021, offers a curriculum for Engineering and Medical entrance examinations. On October 28, ET reported that the PhsyicsWallah is focusing on expanding its offline operations its stated to open 75 more centres in existing and in new cities.
Several edtech companies, including Unacademy shifted to offline models to expanding their business after seeing the slowdown in online operations after surge driven by the Covid-19 pandemic.
