PhysicsWallah Rolls Out School of Startups, Sets Up INR 100 Cr Fund To Back Startups

Edtech unicorn PhysicsWallah has floated ‘PW School of Startups’ and also set up a $11.9 Mn (INR 100 Cr) fund to back more than 100 startups.

As per the company, the PW SOS will provide a platform for entrepreneurs to access cost effective ideation programmes, practical training, mentorship and capital raising opportunities.

It will offer three distinct programmes Aarambh, Prarambh and Hopes Alive which will be uniquely tailored for different stages of an entrepreneurial journey, it added.

• Aarambh, a 5-day offline programme specifically designed for school students, college students and early professionals, will offer access to resources and vital networks, along with offering expert advice to them.
• Prarambh will be an extensive 5 month offline programme designed for college students, early professionals, small family business owners and second-generation entrepreneurs.
• Hopes Alive will be free of cost. The 5-month hybrid programme is designed for seed-funded or bootstrapped startups from across India as well as other domains and sectors.

Founded by Alakh Pandey and Prateek Maheshwari in 2020, PhysicsWallah entered the coveted unicorn club in 2022 by raising $100 Mn in its maiden funding round from Westbridge and GSV Ventures. Since then, it has been constantly expanding its offerings by entering the offline space and acquiring multiple startups and companies.

It offers live courses for JEE and NEET across verticals like Gurukulam Schools, test preparation in more than 43 categories, skilling vertical, higher education and study abroad programmes.

PhysicsWallah competes against the likes of BYJU’S, Vedantu, Unacademy, and Allen among others. 

“I believe that progressing Bharat’s startup ecosystem can significantly contribute to our nation’s economic growth and see immense potential in the startups emerging from Tier 2 and 3 cities. These aspiring entrepreneurs possess incredible business ideas but often struggle due to a lack of guidance and the absence of a supportive community” said Pandey.

This comes months after PhysicsWallah founder Alakh Pandey filed a public interest litigation (PIL) before the Supreme Court seeking a probe into allegations of discrepancies in pan-India medical entrance test, NEET-UG 2024.

It is pertinent to note that the Indian edtech sector is undergoing a funding crunch. 

Unlike the tendency shown by VCs and PEs before the pandemic wherein they infused billions of dollars during the height of the pandemic, the segment has witnessed a waning interest of the investor as the schools and colleges opened post-lockdown. 

Besides this, a slew of issues within the startups in the sector made the matter worse. This issue included heavy cash burn, mounting losses, and weak governance guardrails, among other issues. 

Not to mention, the space was among the leading sectors in laying off the most number of employees over the past two years. 

Even on the financial front, the sector’s heavyweights like BYJU’S, Unacademy, and UpGrad continue to post heavy losses, and names like Udayy, Supen Learn, and DUX Education have shut down operations in the last two years due to the funding crunch. 

According to an Inc42 report the Indian edtech market opportunity is estimated to grow till $29 Bn by 2030. 

Note: The story has been edited to update the fund size after PhysicsWallah revised the number.