Synopsis :- This article contains the strategy used by the Physics wallah to Build an Rs. 40,000 crore company and why Byju’s failed.
India’s edtech boom during covid from 2020 to 2022 took classrooms online and attracted heavy investment, but the momentum slowed once schools reopened. The sector, valued at Rs. 64,875 crore in 2024, is projected to reach Rs. 2,50,850 crore by 2030. Demand continues to rise due to 25 crore K-12 students, more than 1,000 universities and 45,000 colleges, along with a fast-growing test preparation market expected to touch 17.40 billion dollars by 2033.
The Rise of PhysicsWallah
A year after Byju’s launch, Alakh Pandey’s PhysicsWallah emerged as a profitable, Hindi-first, and affordable edtech platform. Starting from a small room with a whiteboard, Pandey grew the brand through free YouTube lessons, now with 13.9 million subscribers. Unlike rivals with high-priced subscriptions, his approachable model helped PW become a unicorn by 2022, expand to over 1,000 Pathshalas, and offer diverse courses for IIT, NEET, school, defence, and government exams at Rs 2,999–31,999.
Different Business Models
Byju’s raised 5.8 billion dollars and scaled aggressively, buying Aakash for nearly 1 billion dollars, WhiteHat Junior for 300 million dollars and several other companies. PW raised Rs. 900 crore in 2022 and Rs. 1,862 crore in 2024, making careful acquisitions including a Rs. 500 crore deal for Xylem Learning and a 40 percent stake in Sarrthi IAS at a Rs. 250 crore valuation.
PW grew conservatively with fewer acquisitions. Byju’s spent heavily in FY22, including Rs. 3,552 crore on employees and Rs. 4,144 crore on advertising, earning Rs. 5,014 crore but losing Rs. 8,245 crore. It spent Rs. 2.73 to earn one rupee. In contrast, PW’s FY25 revenue was Rs. 2,886 crore with total income of Rs. 3,039 crore, and EBITDA turned positive at Rs. 193 crore with a 6.7 percent margin. PW spent Rs. 1.13 to earn one rupee, with employee costs of Rs. 1,401 crore and advertising of Rs. 276 crore.
Offline Expansion and Diversification
By March 2025 PW had 198 offline centres under Vidyapeeth and Pathshala. Byju’s struggled to integrate Aakash’s 325 centres due to its financial crisis. Byju’s expanded into too many segments from K-12 to international learning and coding, which diluted focus. PW diversified slowly and stayed centred on test preparation while reaching tier 2 and tier 3 regions in Hindi and five regional languages.
Byju’s Legal Battles
Byju’s faced major legal setbacks through 2025. Indian courts refused to halt Aakash’s rights issue, and a US court ruled that 533 million dollars moved from Byju’s Alpha were fraudulent transfers. In August 2025, Byju Raveendran claimed the crisis was a corporate raid, argued that the loan was not due until 2026 and stated that promoters infused over 800 million dollars. He alleged deletion of thousands of emails and announced plans to seek 2.5 billion dollars in damages, but courts have dismissed most arguments.
Futures
PhysicsWallah is entering the public market at a Rs. 31,170 crore valuation and after listing has a current market capitalization of around Rs. 37,000 crore; however, its market cap after listing reached a high of around Rs. 46,000 Crore. The company plans to strengthen its offline network and market presence. Byju’s remains uncertain, burdened by shrinking operations and ongoing legal disputes in India and the United States. Their contrasting journeys highlight that steady, disciplined growth ultimately outperforms aggressive, high-burn expansion.
Written by Akshay Sanghavi
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