In a reassuring announcement for students and parents alike, Alakh Pandey, the founder and CEO of PhysicsWallah (PW), has confirmed that all of the edtech unicorn’s courses will remain priced below Rs 5,000 in 2026.
This statement quashes any rumors regarding a potential price hike, which had sparked concern among the PW community.
Pandey addressed recent reports during an event held in Kota, stating emphatically, “All of PW’s batches will continue to remain priced under Rs 5,000.
I promise that if the prices of PhysicsWallah’s courses cross Rs 5,000, either PW won’t exist, or I won’t be part of PW.”
His commitment emphasizes the focus on making quality education accessible to all students, irrespective of their financial circumstances.
This dedication to affordability comes as a relief to many who were worried that the cost of education was on the rise, with previous estimates suggesting a range of Rs 15,000-20,000 for courses.
By keeping prices stable, PhysicsWallah aims to maintain its core mission of providing high-quality educational resources without placing a financial burden on learners.
Alakh Pandey’s clear stance reinforces the belief that education should remain within reach for everyone, a value that is paramount to the operations of PhysicsWallah.
Affordability of EdTech Courses Amid Financial Challenges
As long as platforms like PW exist, the accessibility of educational courses is likely to remain affordable. The company leader, Pandey, emphasized that prices will never exceed Rs 15,000-20,000.
This statement comes in response to recent speculation about potential price hikes following a significant 13-fold increase in losses for FY24, amounting to Rs 1,130 crores from Rs 84 crores in the previous fiscal year.
Despite these alarming financial figures, it is imperative to consider the broader context surrounding these changes. PW, after having reported a profit of Rs 9 crores in FY23 under GAAP standards, has adjusted its financials to comply with Indian Accounting Standards (Ind AS).
This method incorporates non-cash expenses like compulsorily convertible preference shares (CCPs), further complicating the financial outlook.
During these challenging times, PW has embarked on an aggressive expansion strategy, largely propelled by securing a substantial $210 million in series B funding last September.
This development positions PW alongside Eruditus, making them two of the few edtech firms that have secured notable funding rounds exceeding $100 million in 2024.
Such financial backing indicates a potential for stability and growth in the ever-evolving edtech landscape, allowing course prices to stay feasible for the masses.
PW’s Ambitious IPO Plans: Paving the Way for EdTech in India
Since PW’s recent fundraise, which valued the company at an impressive $2.8 billion, the edtech firm has shortlisted four investment banks as advisors.
This move signifies their strategic gearing up for an initial public offering (IPO) slated for 2025.
If successful, PW is set to become the first edtech company in India to make its public debut.
Despite facing an increase in losses for FY24, the top management at PW remains optimistic about their long-term roadmap.
The goal is to achieve over 50 percent growth in FY25. In an interview with Moneycontrol, CEO Pandey expressed confidence, stating, “FY25 is expected to be our highest absolute EBITDA year.”
This optimism stems from the company’s resilient online operations that have maintained nearly 50 percent profitability from inception.
Currently, PW derives around 55 percent of its revenue from online channels, while the remaining 45 percent comes from its offline Vidyapeeth centers.
As of September of last year, eight out of eleven regions operated by these centers were already profitable.
Pandey emphasized that although significant capital expenditure was required initially, offline centers are gradually moving toward profitability, marking a critical evolution in PW’s business model.