India’s edtech sector is reeling from a brutal reality check, but Alakh Pandey-led PhysicsWallah is looking to change the tune with its much-anticipated IPO.

The company is on course to become the first Indian edtech startup to hit the public markets, but the moment comes amid a shift in the company’s approach and a change in its test prep strategy.

The PW IPO said to be in the range of INR 4,000 Cr to INR 4,600 Cr isn’t just a test for the company but also for Indian edtech, which has seen a dramatic reversal of fortunes since the fall of BYJU’S and the troubles at Unacademy.

Outside of these edtech giants, dozens of early stage and growth stage startups also shut shop, as the online-first edtech sector shifted to a hybrid future. Despite billions of dollars of funding during the 2018-2021 period, edtech startups just couldn’t eke out profitability.

In this context, PhysicsWallah was seen as a ray of hope. Its first major funding round in June 2022 turned it into a unicorn, but unlike others in the sector, the startup was profitable. This immediately set it apart from the rest, but somehow over the course of the last three years, PhysicsWallah has slipped into losses just like the rivals it looked to disrupt.

Its product strategy changed — as we noted in our past coverage — and the company was burdened with customer acquisition costs that took a toll on its bottom line. The rapid expansion into various segments also changed the revenue mix and balance.

But as it builds up to its IPO, PhysicsWallah is looking to clear all nagging doubts. Sources indicate that the company achieved breakeven in FY25, which would certainly be a major feat in edtech and a validation of the company’s approach thus far.

With that said, all is not rosy. The edtech startup, which continues to chase growth aggressively, has had to give up a little bit of what worked for it in the past and as a result runs the risk of slipping back into losses. As we will see, profitability in edtech is not just a matter of creating a flywheel once, but sustaining it year after year.

While the pre-IPO filings with SEBI will clear a lot of these doubts, what’s happening at the edtech unicorn right now? And is PW set to rewrite edtech’s rules again?

Not So Affordable Anymore

PW, which rose to prominence by addressing the needs of students in tier II and tier III cities and smaller towns, is now showing signs of evolving into a profitable revenue machine, one that is more focused on monetisation than it was in its early days.

Earlier, PW carved a niche by solving a problem that most urban-focused edtech startups ignored: accessibility for rural and economically disadvantaged students. Its platform was built in a way that it could support low-data environments, and pricing was deliberately kept affordable.

While the likes of Allen Digital, Vedantu, BYJU’S and Unacademy priced their annual courses between INR 30,000 and INR 80,000, PW zagged and chose the affordable segment for its go-to-market.

PW’s courses were priced at INR 4,000 to INR........

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