Profit at PhysicsWallah approaches Rs 100 Cr in FY22 while revenue increases 9.5X
- ByStartupStory | November 11, 2022
After raising its first-ever institutional round of $100 million from WestBridge Capital and GSV Ventures in June of this year, edtech platform PhysicsWallah became a member of the coveted unicorn club. Now that the valuation has been revealed, it is likely due to an increase in profit of 14 times and an increase in income of at least ninefold. According to the company’s annual financial statement filed with the Registrar of Companies (RoC), PhysicsWallah’s revenue from operations increased 9.5X to Rs 233 crore for the fiscal year ended March 2022 from Rs 24.6 crore in FY21. The company’s sole source of income during FY22 came from educational services like coaching and the selling of study materials. The overall income for PW reached Rs 234.7 crore when non-operating revenue of Rs 1.67 crore was also booked. Six-year-old Physics Wallah offers online and offline classes and study materials for JEE, NEET, and other engineering entrance and state board exams under the direction of Alakh Pandey and Prateek Maheshwari. For the aforementioned tests, the platform provides live seminars, video lectures, test series, and dynamic activities.
Along with operating 28 physical centres in 20 cities like Delhi, Bhopal, Varanasi, Lucknow, Pune, Patna, and Ranchi, PhysicsWallah also maintains channels on YouTube and mobile apps. There are more than 18 million subscribers to its YouTube channel. Employee benefits costs were listed as the greatest cost area on the expense side, accounting for 41% of the whole expenditure. From Rs 2 crore in FY21 to Rs 42.34 crore in FY22, this expense increased by nearly 21X. Legal and professional fees made up about 16.8% of yearly spending and increased by almost 49% in FY22 to Rs 17.3 crore. In FY22, other costs including marketing and advertising and IT costs skyrocketed to Rs 11 crore and Rs 3.72 crore from Rs 14 lakh and Rs 3 lakh reported in the prior fiscal year. During the previous fiscal year, the corporation also spent Rs 4.07 crore on transportation.
In line with its growth in revenue, PW’s total spending increased 6.7X to Rs 103 crore in FY22 from Rs 15.36 crore in FY21. The company’s yearly profits increased by nearly 14X, from Rs 6.92 crore in FY21 to Rs 98.23 crore in FY22, thanks to the 9.5X rise in scale (FY21). Additionally, cash inflows from operating activities increased by 57% in FY22, surpassing Rs 70.2 crore. When it comes to ratios, the year’s stronger top and bottom lines may be blamed for the EBITDA margin’s 1,948 BPS increase to 57.58%. PhysicsWallah spent Rs 0.44 to make one rupee in operating revenue on a per-unit basis. The lone startup making profits on the income statement is PhysicsWallah, which joins the unicorn club. In addition to maintaining its focus on unit economics, the company managed to withstand the funding winter without making any layoffs. The company recently disclosed that it has not yet utilised the most recent round of funds and that no additional fundraising is planned in the foreseeable future. Which is great because it puts it in a very good position against potential competition. Competitors including Byju’s, Vedantu, and Unacademy are having trouble raising new rounds and have together laid off more than 3,000 workers in 2022. Several media reports indicate that the number might be greater.
PhysicsWallah expects to generate Rs 1,200 crore in revenue for the fiscal year FY23. If it succeeds, it will be a noteworthy accomplishment given how quickly the market has continued to change since educational institutions once again became available to the public. The once-exploding internet industry has unquestionably slowed down in several areas, and customer acquisition is going to become much more difficult in the future.
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