Abhishek Gaur
8 Nov 2024
Physics Wallah's operating revenue surged 2.6X to INR 1,940.4 crore in FY24.
The company's net loss increased due to changes in fair value of CCPS and higher employee expenses.
Physics Wallah's FY23 net profit was also revised due to accounting standard changes.
The startup's growth is driven by increased user base and expansion of offerings.
New Delhi: Edtech unicorn Physics Wallah (PW) recently reported a significant net loss of INR 1,131.2 crore in the financial year 2023-24, a sharp increase from the previous year's loss of INR 84.06 crore. The primary reasons for the increased loss include a change in fair value of CCPS and a surge in ESOP and employee expenses.
Despite the substantial loss, PW's operating revenue surged 2.6X to INR 1,940.4 crore in FY24. The company's aggressive expansion plans, including offline initiatives, contributed to the increased expenditure.
Founded by Alakh Pandey and Prateek Maheshwari, PW has rapidly scaled its operations and expanded its product offerings. In September 2023, it raised $210 million in a Series B funding round, valuing the company at $2.8 billion.
While the significant loss raises concerns about the sustainability of the edtech sector, it's important to note that PW is investing heavily in growth and innovation. The company's focus on affordable and accessible education has resonated with millions of students across India.
However, the edtech sector as a whole faces challenges such as intense competition, rising costs, and changing consumer behavior. As PW and other edtech companies continue to evolve, it will be crucial to balance growth with profitability and ensure long-term sustainability. Source: Inc42
