Physics Wallah: From YouTube Channel to IPO Dream or BYJU’s 2.0?
1. Summary in Plain Words
From a modest setup costing just ₹30,000 to a unicorn startup earning over ₹2,000 crore in revenue — Alakh Pandey didn’t just teach, he disrupted the entire EdTech ecosystem. Physics Wallah (PW) began as a humble YouTube channel and has grown into a company planning for an IPO. Its hallmark: affordable, accessible, and relatable teaching. But with rapid growth, many are now asking: Is PW repeating BYJU’s story?
2. Founding Story: Middle-Class Grit to Million-Dollar Gyaan
2.1 Alakh Pandey: The Original Hustler
Born in 1991 in Prayagraj, Alakh Pandey grew up in a financially strained family. He began teaching in his teens and enrolled in HBTI Kanpur for engineering. However, dissatisfied with the theory-heavy approach, he dropped out. His passion for teaching outweighed the pursuit of a degree, and he knew early on: “Teaching gives me more joy than sitting in classrooms.”
2.2 The Launch of the YouTube Channel
PW’s YouTube journey began in either 2014 or 2016 (reports vary). With just ₹30,000, Alakh set up a whiteboard, a phone, and a tripod to start his channel. His audience? JEE and NEET aspirants who couldn’t afford expensive coaching. The channel quickly gained traction through word-of-mouth, reaching 10,000 subscribers in the first year.
2.3 Enter Prateek Maheshwari: Tech Meets Talent
In 2019, Prateek Maheshwari joined Alakh, bringing a tech-first vision. He built the app, backend systems, and digital infrastructure. Alakh focused on content and brand, while Prateek handled tech and product. Together, they scaled PW from a content channel to a full-fledged EdTech firm.
3. Business Model Breakdown: Free + Paid Combo
3.1 Hybrid Freemium Model
PW offers free content on YouTube to build trust, while monetizing through paid courses on its app and website (starting ₹3,500/year). Offline centers like Vidyapeeth and Pathshala charge up to ₹50,000/year. The courses cater to students from class 6 to competitive exams like JEE, NEET, UPSC, MBA, and SSC.
3.2 Competitive Pricing
PW’s motto: “Teach for 10% of BYJU’S price.” They focus on Tier 2–3 cities and budget-conscious families, offering discounts and scholarships. While UPSC, MBA, and CA prep courses come at a premium, they still remain competitively priced.
3.3 Revenue Split (FY24 Estimates)
- Online Paid Courses: ~60% – Low-cost, high volume
- Offline Courses: ~40% – High ticket size
- YouTube Ads: Moderate – 112 channels drive reach
- Books & Study Material: Small to moderate – Bundled with courses
- Merch & App Ads: Small – Branding and monetization
- Licensing/Partnerships: Minor – Long-term B2B play
4. The PW App: From Crash to Craze
4.1 Jackpot Timing
Launched in May 2020 during the COVID lockdown, the PW app saw 3 lakh downloads in just seven days. It even crashed on Day 1 due to the overwhelming traffic. The first batch “Lakshya” was priced at ₹999 and attracted 70,000 students.
4.2 Today’s App = AI + Personalization
The app now boasts over 15 million downloads and 2.1 million daily active users. It offers live and recorded classes, AI features like Alakh AI, Saarthi, and Smart Doubt Engine for doubt-solving, notes, mentorship, and mock tests.
5. The Acquisitions Game: Same BYJU’S Script?
Once PW hit the ₹1 billion valuation mark, it began acquiring other companies — much like BYJU’S did.
PW’s Acquisitions:
- iNeuron – Tech/coding skills
- Xylem Learning – JEE/NEET prep in South India
- OnlyIAS – UPSC aspirants
- FreeCo – Doubt solving tech
- Knowledge Planet – UAE market
- Altis Vortex – Publishing control
- Sarrthi IAS – UPSC mentorship (in talks)
A rumour also surfaced about a ₹2,500 crore offer for Drishti IAS, which was later denied.
6. Financial Performance (FY20–FY24): Profit to Loss
| FY | Revenue (₹ Cr) | Net Profit/Loss (₹ Cr) | Total Expense (₹ Cr) | Highlights |
|---|---|---|---|---|
| FY20 | 24.6 | 9.4 (Profit) | N/A | Start of monetization |
| FY21 | 232.5 | 133.7 (Profit) | N/A | Online scale-up |
| FY22 | 771.8 | 108 (Profit) | 777 | Entry into offline |
| FY23 | 744.3 | -84.1 (Loss) | 862 | Team cost, restructuring |
| FY24 | 1,940.4 | -1,131.3 (Loss) | 3,279.1 | Prepping for IPO |
Note: FY24’s ₹1,131 Cr loss includes ₹756 Cr as technical loss (due to CCPS accounting). Real cash loss stands at ₹375 Cr.
7. Controversies: Success Brings Scrutiny
7.1 Teacher Exits (2023)
High-profile teachers like Tarun, Manish Dubey, and Sarvesh exited and launched “Sankalp Bharat.” Their claim: “PW isn’t what it used to be — quality and vision are compromised.”
7.2 Allegation Drama
Teacher Pankaj claimed Adda247 offered ₹5 Cr to poach PW teachers. The teachers refuted this, stating they left voluntarily and were even restricted from accessing their own channels. PW called it a distraction. Regardless, the reputation took a hit.
8. Why PW Worked: Disruption Blueprint
8.1 Pricing Disruption
While others charged ₹30K–₹1L+, PW offered quality education for ₹999–₹3,500. This brought high-quality education to Tier 2–3 audiences.
8.2 Competitor Shake-up
PW’s rise forced competitors to adapt. BYJU’S shifted to hybrid, Unacademy pushed regional content, and all had to reduce prices or risk irrelevance.
9. EdTech Battlefield: Comparing the Giants
| Platform | Strengths | Weaknesses |
| BYJU’S | Strong brand, global reach | High burn rate, sales pressure |
| Unacademy | Massive content, top educators | Tech glitches, teacher churn |
| Vedantu | Personalized tech, live sessions | Higher pricing, no offline presence |
| PW | Affordable, hybrid, desi connect | Teacher exits, scaling pains |
10. Future Outlook: Is PW the Next BYJU’S?
What’s Working:
- Strong student trust
- Affordable model
- Hybrid + regional growth
- Tech and content synergy
What’s Worrying:
- Acquisition spree
- Rising losses
- Teacher loyalty questions
- IPO pressure
Verdict: Physics Wallah still stays rooted in its core values — affordability, accessibility, and real impact. But if it loses focus and repeats BYJU’S mistakes with over-acquisitions and unchecked spending, it might just follow the same trajectory — only with better PR.
