Archive — US — techcrunch
Physics Wallah enjoys a rosy IPO day, bucking the broader slowdown in Indianedtech
Physics Wallah, an Indian edtech startup, had a successful IPO, closing 44% higher than its listing price. Valued at around $5 billion, it raised ₹34.8 billion ($393 million) and plans to use proceeds to expand its offline presence and technology. This rise contrasts with struggling rivals like Byju's and Unacademy, highlighting a potential recovery in India's edtech sector amid broader industry challenges.
Key points
- Physics Wallah's shares rose 44% on its IPO day, closing at ₹156.49 from an initial price of ₹109.
- IPO raised ₹34.8 billion, with ₹31 billion from new shares and ₹3.8 billion from co-founders selling equity.
- The company, originally a YouTube channel since 2016, now operates offline centers and offers diverse courses.
- Despite its success, competitors like Byju's are in turmoil, facing insolvency and corporate governance issues.
- Physics Wallah's revenue grew by 49% to ₹28.9 billion, with a narrowed net loss and an increase in paying subscribers.
Why it matters
- Edtech sector challenges reflect broader investment trends; startups face pressures from economic shifts and funding scarcity.
- Physics Wallah's growth contrasts sharply with the downturn of major players like Byju's, which was once valued at $22 billion.
- The increased focus on online learning and skills development aligns with global shifts in education post-pandemic.
Physics Wallah's IPO success indicates resilience in India's edtech market, potentially signaling a turnaround as it outpaces struggling competitors amidst industry challenges.