From YouTube to classrooms: PhysicsWallah’s ₹3,100-crore fresh issue to fund offline push, hybrid growth

Edtech unicorn PhysicsWallah (PW) is gearing up for a massive offline expansion, as Co-Founders Alakh Pandey and Prateek Maheshwari revealed how they plan to use the ₹3,100 crore being raised through a fresh issue in an interview with ET Now. The proceeds will fund the launch of 200 new tech-enabled offline centres, boost branding and marketing initiatives, and support infrastructure expansion over the next three years.

Not a pivot, but an extension: PhysicsWallah bets big on offline hybrid learning

Despite its strong online roots, PhysicsWallah is expanding into the offline space — but with a digital edge.

“It’s not a pivot; it’s a natural progression,” said Maheshwari. “Students want hybrid experiences — our offline centres are tech-enabled, with smart boards, cameras, and post-class access to lectures.”


The company currently operates over 300 centres and plans to open 200 more in the next three years. PhysicsWallah’s offline business, he said, currently delivers steady margins of 15–18% and has a “93% market headroom” for growth in India’s test-prep ecosystem.

Edtech’s hybrid future: From YouTube to the classroom

PhysicsWallah’s online reach remains formidable — with a 12-crore student community across 900+ digital channels on YouTube, Telegram, Instagram, and Snapchat.

“Our online model has very high contribution margins and EBITDA because thousands of students learn together in AI-powered classrooms,” said Maheshwari.

However, student demand post-COVID prompted the company to launch offline centres, blending technology with physical presence — creating what Pandey calls “a tech-driven learning ecosystem.”

₹3,100 crore fundraise to power expansion, branding & cloud infra

According to the co-founders, a major share of the upcoming ₹3,100 crore will go toward:

• Capex for new and existing centres
• Lease and cloud payments
• Branding, events, and marketing

“A big part of the funds is split between setting up new centres and scaling brand visibility,” Pandey said.

Cash-rich, compounding growth story

Unlike many startups burning cash to expand, PhysicsWallah is cash positive.

“In FY24, we generated ₹200 crore in operational cash; FY25 crossed ₹500 crore,” Pandey shared. “Offline takes about 24 months to breakeven, but it’s a compounding story.”

Maheshwari added that the company’s cash from operations doubled year-on-year, underscoring sustainable growth.

“We can’t give forward guidance, but PAT profitability is coming very soon,” he said.

Revenue recognition tied to academic cycles

PW follows a revenue model aligned with the academic calendar.

“Students enroll in the first six months; revenue accrues over course duration,” explained Maheshwari. “Quarter 3 and 4 are typically stronger, but we assess performance annually to reflect true profitability.”

Industry outlook

Analysts note that PhysicsWallah’s hybrid expansion strategy mirrors a broader shift in India’s edtech landscape — from digital-only to blended learning formats. With competitors scaling back, PW’s focus on sustainable margins and offline presence positions it as a rare profitable player in India’s edtech 2.0 era.