SUMMARY
- PhysicsWallah saw a 2.6 times growth in its operating revenue reaching Rs 1,940.4 crore in FY24.
- Its total expenses amounted to Rs 1,159 crore, rising 180.9% YoY.
- The edtech’s losses were noted as Rs 375 crore in the year under review.
PhysicsWallah experienced a 2.6 times growth in its operating revenue reaching Rs 1,940.4 crore in FY24 from Rs 744.3 crore in the previous fiscal year, as per its consolidated financial statements with the Registrar of Companies.
PhysicsWallah’s primary source of income, educational services, accounted for over 90% of its revenue, with the remaining 10% coming from product sales. Additionally, the company earned Rs 74.64 crore from interest and gains on its financial assets, raising its total revenue to Rs 2,015 crore in FY24.
Established in 2020 by Pandey and Prateek Maheshwari, PhysicsWallah offers a wide range of courses and study materials for various entrance exams, including JEE, NEET, and state board exams, both online and offline. The company also has divisions for skill development, higher education, and opportunities for studying abroad.
The edtech unicorn claims to provide free education to over 4.6 crore (46 million) students through its 112 YouTube channels in five different regional languages, in addition to serving 5.5 million students who pay for its services.
The edtech allocated 35.3% of its total expenses on employee benefits, which amounted to Rs 1,159 crore, rising 180.9% YoY from Rs 412.6 crore in FY23.
Other expenses included the costs of materials and legal and professional expenses. The company managed to reduce its advertising and promotional expenses by 70.8%, to Rs 19.56 crore in FY24.
The total expenses crossed the growth in revenue, increasing by 280.4% to Rs 3,279 crore in FY24. Rs 1,452.7 crore were labelled as miscellaneous expenses, out of which Rs 756 crore has been booked in non-cash expenses (fair value loss of CCPS).
PhysicsWallah’s losses expanded by over 13 times, reaching Rs 1,131 crore in FY24 from Rs 84 crore in FY23.
The company’s losses also include Rs 756 crore under the fair value loss of CCPS, excluding which, the company’s losses were noted as Rs 375 crore in the year under review.
Notably, the edtech reported Rs 779.28 crore in revenue from its core operations and Rs 8.87 crore in profits for the fiscal year 2023. However, the latest annual report shows a decrease in operating revenue to Rs 744.3 crore and a net loss of Rs 84 crore for FY23.
Its adjusted EBITDA stood positive at Rs 67 crore, excluding ESOP costs worth Rs 151 crore and other non-cash elements of depreciation, amortization, and impairment among others.
Despite facing financial setbacks, the company’s cash flow from operations stayed positive, amounting to Rs 211.85 crore. The EBITDA margin and ROCE declined to -44.70% and -85.84%, respectively. On a per-unit basis, Physics Wallah spent Rs 1.69 to generate a rupee of operating income.
PhysicsWallah secured the largest equity investment for an edtech firm in recent years, raising $210 million, which increased its total funding to $310 million, taking the company valuation to $2.8 billion. The co-founders now own over 85% of the company’s shares.
