Edtech platform PhysicsWallah to raise at least $250 million at a valuation of $3.3 billion, three times higher than its unicorn valuation of $1.1 billion.
The Alakh Pandey-led edtech behemoth is looking to raise funds at a time when the edtech sector is struggling due to a funding winter and a decline in growth as schools, colleges, and coaching centres reopen following the pandemic.
According to Moneycontrol, the edtech unicorn is in talks with multiple private equity (PE) investors for the funding round. The existing shareholders of PhysicsWallah, GSV Ventures and WestBridge Capital, will also increase their stakes in the round, according to the report.
However, one source stated that because the talks are still in their early stages, the round size may vary. PhysicsWallah will aim to raise at least $250 million in the round, according to the source.
Interestingly, the source also stated that PhysicsWallah, India’s 101st unicorn last year, does not require funding but is looking to increase its valuation and secure capital for potential mergers and acquisitions.
Alakh Pandey’s edtech unicorn has only raised one institutional round so far, a $100 million unicorn round last year. Pandey and Prateek Maheshwari founded the company in 2020, and it has recently been on an acquisition spree. The edtech unicorn formed a long-term partnership with Utkarsh Classes to scale operations and offerings together.