PhysicsWallah is in talks to raise substantial funding, with new and existing investors involved. One source said that PhysicsWallah is set to raise USD 150 million from new and existing backers. The source added that the terms of the deal have been sealed, and the transaction is likely to be public soon.

According to three sources familiar with the discussion who spoke to Entrackr, new investors will lead the fresh funding, and existing investors such as Westbridge and GSV Ventures will also participate.

Sources indicate that the company is expected to raise millions and will be valued at around USD 2.8 billion. This would be a significant increase from its previous valuation of USD 1.1 billion.

The education company initially focused on online coaching for IIT/JEE exams and has now expanded to offer offline coaching, schools, colleges, and upskilling programs. Approximately 30% of its revenue comes from JEE and NEET coaching, with offline coaching contributing 35% of the collection.

Although the firm’s revenue increased significantly to Rs 779 crore in FY23, its profit declined by over 90% to Rs 8.87 crore in the same period. Additionally, the company laid off 120-150 employees in a cost-cutting measure.

The funding news underscores investor confidence in PhysicsWallah’s long-term prospects while also highlighting the challenges faced by other players in the ed-tech space. This investment is expected to provide the company with the resources to expand and compete effectively in the market.