After Byju’s collapse, can PhysicsWallah lead India’s ed tech comeback?

The edtech firms in India are shifting their business model significantly. Several years of funding deceleration and raising of major players such as Byju's have led to many looking to a new model: hybrid learning, upskilling negotiations, and university tie-ups. The IPO of PhysicsWallah is being regarded by most people as a milestone that might restore the sector.

The edtech world experienced a funding winter in recent years. Inc42 reported in 2024 that Indian edtech startups had only raised 568 million dollars and that the amount of deals had decreased drastically. Meanwhile, Byju’s, who was a market leader, failed amid financial pressures and this jostled investor confidence to its roots.

Since the downfall of Byju’s, the question of PhysicsWallah being the pioneer in the Indian edtech revival has been posed by numerous investors and educators.The high IPO performance of PhysicsWallah indicates that trust in the industry has been restored gradually, particularly in firms that are sustainably oriented and not ambitious to grow.PhysicsWallah, as opposed to that of Byju’s, which relied on the expensive sales model and fast foreign expansion, is establishing a balanced hybrid model including online classes and learning centers. 

Upskilling and university partnerships are other areas through which the company is diversifying and this provides a more stable revenue mix.Its low cost, frugal expenditure and high brand confidence amongst students have put it at an advantage in the current market.Although PhysicsWallah cannot turn the whole sector around on their own, their success provides an example of how edtech companies in India can restructure: by making their products and services affordable, based on real learning outcomes, and financially disciplined.

PhysicsWallah’s IPO: A boost for investor confidence

PhysicsWallah (PW) had an extremely strong entry with the stock market. During its initial trading day, its share price soared nearly 49% accessing the corporation with a valuation of approximately 5.2 billion dollars. This huge inflow indicates that investors are now ready to gamble on Indian edtech.

The IPO price range offered by PW is Rs103-109/share. The funds raised were approximately Rs3,480 crore with Rs3,100 crore being raised through new shares, a good indication of PW investing in hybrid learning.

PhysicsWallah is not merely maintaining a presence online. It will have 60-70 new offline centers within a six month period and 200 within three years. The mix of the business is subject to change in the company: the company anticipates that in FY30, 55% of its revenue will be associated with online courses and 45% with offline.

It also introduced a learning application called Pi, which is a low-cost application, of Rs300 per month. This justifies its hybrid model by providing cheap access to students in the whole of India, even in areas that find it more difficult to scale in-person coaching.

University tie-ups and upskilling: A new growth engine

In addition to test-prep, numerous edtech providers are currently collaborating with universities to deliver upskilling programs and credentials. This is particularly necessary due to the increased need for education related to the job. Providing online micro-credentials and collaborating with universities and concentrating on skills that are in demand, these edtech platforms are creating more reliable, higher-value revenue streams.

In the case of edtech companies, these tie-ups can aid in lowering the customer acquisition cost, as well as attracting those students who seek accredited credentials. In the case of universities, collaboration with edtech provides them with scale, expedited delivery of curriculum, and improved alignment with industry.

PhysicsWallah: Why upskilling is critical now

The Indian Job market is also becoming more skill intensive in the field of data, cloud computing, AI and other emerging fields. The benefit will accrue to edtech companies that create courses that are employer oriented, like project-based learning and placement support. Besides, the use of vocational and online degrees is becoming credible due to government and regulatory backing. This demand model will make edtech revenue more predictable and stable as it is not so reliant on exam-prep cycles.

In the case of EdTech Startups: PhysicsWallah (PW) had an extremely strong entry with the stock market.The startups will be required to demonstrate that they can grow sustainably and provide value and not necessarily scale because scale is important.

• In the case of Universities: It is rational to collaborate with edtech, however, they still need to keep their programs quality and employable.

• Investors: They will probably prefer those edtech companies with apparent revenue diversity (online + offline + university) and unit economics.

• To the Policymakers: It can offer both high-quality online learning and a high level of protection and credentials of students.

Nonetheless, there is no chance that would be risk-free. The market feeling may shift rapidly when PW or other corporations are unable to provide steady growth. It is capital-intensive and may be dangerous to scale the offline centers in case the demand is slow. It will also be important to ensure that upskilling programs and valid credentials are of good quality; otherwise, the lack of trust may be undermined.

The road ahead

The IPO of PhysicsWallah is a promising indication to the edtech market in India. It demonstrates that hybrid learning, upskilling, and university tie-ups are not mere buzzwords, but they are actual growth levers. When other companies in the edtech industry follow suit and perform effectively, it may well be the year in which the sector is actually recuperating and creating a more sustainable and impact-driven business model.