In the intriguing realm of fiction and friction, the conventional answer would be that both words merely differ by a single letter ‘r.’ However, Alakh Pandey, the unconventional physics teacher and mastermind behind PhysicsWallah, offers a unique perspective. According to him, the interplay of good fiction and friction contributes to building a beautiful world. While Alice in Wonderland exemplifies good fiction, the act of writing on a blackboard or notebook represents friction. Pandey’s renowned knack for simplifying complex concepts has garnered him a massive following on social media, with an astonishing 31 million subscribers, 61 YouTube channels, and an impressive 5.3 billion views. These numbers are no fiction; they are a testament to his success.
Pandey’s entrepreneurial journey seems like a remarkable tale of fiction itself. With his very first fundraise, PhysicsWallah soared into the unicorn club, earning a valuation of $1.1 billion. In a mere three years, the revenue skyrocketed from Rs24.6 crore in FY21 to a staggering Rs751 crore in FY23. More remarkably, PhysicsWallah has maintained profitability for three consecutive years, generating profits of Rs9.4 crore, Rs 133.7 crore, and Rs108 crore in FY21, FY22, and FY23, respectively. It’s a narrative that defies norms and leaves one in awe.
Contrasting his accomplishments with the struggles of other big players in the edtech world, who had far more significant headstarts in funding and valuation, Pandey remains undeterred. Byju’s, for instance, faced valuation markdowns and hefty losses, while Unacademy and Vedantu also grappled with substantial losses. In contrast, PhysicsWallah has raised $100 million with zero layoffs. Pandey dismisses comparisons, emphasising the significance of competition in keeping them agile and aiding growth.
Pandey’s journey as an entrepreneur is driven by his unique background and values. Having grown up without privilege or comfort, he learned the value of money from a young age. The frugal lifestyle he embraced during his early years provided invaluable lessons that set him apart from others in the edtech landscape. Inertia played a role in his success, allowing him to focus on understanding what students truly need and want to learn. Engaging with his students, listening to their feedback, and adapting accordingly have been crucial to PhysicsWallah’s growth.
The monetization of his YouTube channel allowed him to gradually scale up, and prudent financial management became second nature. While other edtech players relied on burning cash for rapid expansion, Pandey’s approach was to conserve and utilize resources judiciously.
A significant turning point came in 2020 when PhysicsWallah introduced a paid app and began monetizing its offerings. This move, combined with an offline expansion under Vidyapeeth, fueled tremendous growth. Pandey’s vision for Vidyapeeth includes reaching tier III, IV, and beyond, with a projected revenue of Rs2,500 crore by FY24. Inorganic growth through acquisitions has also been a strategic move to build a pan-India edtech empire. Acquiring profitable and well-established education players has given PhysicsWallah a diverse reach and appeal.
Investors have been thrilled to be part of this extraordinary journey. PhysicsWallah’s close-to-zero customer acquisition cost has been instrumental in achieving exceptional growth, extending its offerings beyond JEE/NEET to encompass over 19 examination categories, enabling millions of students to access affordable, high-quality, tech-enabled education.
The tale of Alakh Pandey and Physics Wallah is one of inspiration, vision, and unconventional success. As they continue their journey, the future holds great promise, and with Pandey’s velocity and momentum, he is undoubtedly a force to be reckoned with in the edtech landscape.
