Physics Wallah is making headlines yet again with its latest revenue milestone of INR 3000 crores. Well, you may think, what’s so special about that and why is it making headlines? Right? Amongst all the startups out there, ed-techs are struggling really hard to survive, and a very well-known company, Byju’s, has failed miserably, and even another giant, Unacademy, is struggling, as we even saw the fall in its revenue last year. During these uncertain conditions in this industry, Physics Wallah successfully raised money last year, and now they are hitting INR 3000 crore in revenue.
So, we need to do a deep dive into this company. We all know the story of the company, but let’s now focus more on their strategies and what unique things have shaped Physics Wallah as it is today. So, let’s first start with the key actions of that company in the last few years. One of the major strengths of the company is its balanced and more operationally grounded scaling with controlled expenses and a strong path to profitability. The company had already reported profits earlier, but due to expansion plans, it went into losses.
If we look at the numbers for the last three financial years, it gives a clear picture. In FY23, the company generated about INR 744 crore, then it spiked and reached INR 1940 crore, and recently in FY25, it crossed INR 3000 crore in revenue. But what are the key growth factors? The major growth is attributed to its offline expansion. For most edtech firms, the pandemic gave a tremendous boost, and multiple companies scaled up so fast, but after the pandemic period when restrictions eased, the online model has seen falling engagement, high churn, and poor retention outside metros.
This is where, for the last two years, companies started expanding their offline presence. PW launched Vidyapeeth and Pathshala centers, scaling to 100+ offline hubs across India in just two years. But unlike other major edtech companies, they played it totally differently. Instead of rushing into high-cost infrastructure, they ventured into leaner and more affordable places and placed their centers in Tier-2 and 3 cities, where demand is untapped. This gave them the initial push. But the complementary ecosystem they built is something that helped them to scale.
Physics Wallah has built a complementary funnel, which is a rare balance between online and offline education. Online acts as the entry point to millions of students who consume free or ultra-low-cost lessons on YouTube or the PW app, creating trust and scale at a fraction of traditional acquisition costs. But when it comes to high-stakes exams like JEE and NEET, cultural preferences come in as parents in smaller towns value the discipline, structure, and reassurance of physical classrooms. That’s where PW’s offline centers come in, monetizing the trust built online.
The economics are equally strategic: online courses deliver high margins but suffer from low retention, while offline centers operate at thinner margins yet lock students into year-long programs, ensuring steady revenue. Now they have over 200 offline centers as of FY25 and so, this is one of the reasons why it is able to generate the positive cash flows and clock thousands of crores in revenues. This expansion has been powerful enough that offline operations now contribute nearly 45% of Physics Wallah’s overall revenue, even though offline enrolments represent only a fraction of the platform’s total student base.
In other words, the per-student monetization in offline centers is significantly higher than in the online model, driven by higher course fees, better upselling opportunities, and the parents and students attaching to physical classrooms. Then comes the pricing strategy. While its competitors charge an average of INR 40,000, PW charges INR 4,000 to INR 6,000. They also have a massive audience base with over 5 million active enrolments as of FY25, and they provide the content in vernacular languages.
Physics Wallah has been strategic in using acquisitions to plug gaps and expand beyond its core test-prep stronghold. The company has picked up stakes in smaller startups such as Xylem Learning (Kerala-based test prep), PrepOnline (NEET/JEE content), and iNeuron (skilling and tech upskilling) that allowed it to diversify into regional markets and new verticals like upskilling and professional education. These acquisitions have helped PW sharpen its positioning not just as a JEE/NEET player but as a full-stack education company.
PW has also raised millions in funding during the last few years, and now the company is planning to go for an IPO between 2027 and 2028. So, to sum it up, Physics Wallah’s growth is attributed to the offline presence, complementary strategy, vernacular teaching and content offering, acquisitions, and most importantly, its affordable offerings. For now, the company is playing the game strategically, and it is working as it planned. Let’s see how it turns out in the future.
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