Not just another edtech story: Inside PhysicsWallah's Rs 1,131 crore loss

Last week, PhysicsWallah—one of India's hottest edtech companies—released its financial results for the year ended March 2024 (FY24). While the company’s revenue soared 160% to Rs 1,940 crore, what caught the eye was the company’s record loss of Rs 1,131 crore. The Noida-headquartered edtech even revised its FY23 bottom line from a profit of Rs 9 crore to a loss of Rs 84 crore.

While loss-making edtechs are hardly a rare breed, PhysicsWallah, best known for its charismatic founder and star educator Alakh Pandey, initially garnered eyeballs because it was actually profitable.

Indeed, since its founding in 2020, PhysicsWallah had consistently turned a profit. In FY21, its first operational year, it posted a nearly 30% net profit margin on modest revenues of Rs 25 crore. Its net profit margin improved to 42% the following year.