In the financial year ending on March 31, 2023, Alakh Pandey, one of the co-founders of PhysicsWallah, received an annual salary of INR 4.57 Crore. This was a significant decrease from his remuneration of INR 9.6 Crore in the previous fiscal year, as reported by the Ministry of Corporate Affairs. Despite this, the average salary for founders across various startups increased by 69.7% to INR 5.77 Crore in FY23, compared to INR 3.40 Crore in FY22, according to Inc42’s Founder Salaries Tracker FY23. The highest-earning founder in FY23 was Supam Maheshwari from FirstCry, with an annual salary of INR 200.7 Crore.
PhysicsWallah, founded in 2016 by Alakh Pandey, initially started as a YouTube channel focused on preparing students for competitive exams. Over time, it evolved into a comprehensive edtech startup offering various courses. In 2020, Prateek Maheshwari joined as a co-founder. Despite being the only profitable edtech unicorn in India, PhysicsWallah experienced a significant decrease in net profit, dropping by 91% to INR 8.9 Crore in FY23 from INR 98.2 Crore in the previous fiscal year. This decline was attributed to a substantial increase in expenses.
However, the operating revenue of PhysicsWallah saw a remarkable growth of 234% to INR 779.3 Crore in FY23 from INR 233 Crore in the previous fiscal year. This surge in revenue was driven by the startup’s expansion into offline education and its acquisition activities. With a focus on expanding its offline presence, PhysicsWallah’s total expenditure skyrocketed by 671% to INR 794.5 Crore in FY23 from INR 103.1 Crore in FY22.
In 2022, PhysicsWallah achieved unicorn status after securing a $100 million funding round from Westbridge and GSV Ventures. Since then, the startup has been continuously diversifying its services, including the introduction of post-graduate programs and an upskilling platform called PW Skills. Additionally, it has expanded its offline coaching services through 60 Vidyapeeth centers across India and ventured into primary education with PW Gurukulam School.
In summary, PhysicsWallah, led by its co-founders Alakh Pandey and Prateek Maheshwari, has witnessed significant growth and transformation since its inception as a YouTube channel in 2016. Despite facing challenges in maintaining its profitability amidst rising expenses, the startup remains focused on expanding its reach and offering diverse educational services to students across India.