What could have been the chemistry behind the union of a socialist and a capitalist as they describe themselves? A shared vision, perhaps, at least going by what Prateek Boob Maheshwari and Alakh Pandey believe to have played behind the making of PhysicsWallah.

Cracking the edtech puzzle in a rapidly evolving market like India is a tough task. The downfall of BYJU’S and a likely fire sale of Unacademy prove the point beyond doubt.

Unlike fintech and ecommerce, edtech has been on a downward spiral ever since the Covid waves ebbed and hybrid learning emerged as a more viable alternative. What added to the momentum was its failure to live up to its promise. After edtech, learning isn’t really inaccessible, but it stayed unaffordable for a larger section of the mass.

“That’s the puzzle we cracked. Nearly 93% of our paid learner base comes from online test prep vertical which has affordability, low-cost product as its core offering,” Maheshwari said in an exclusive interview with Inc42. It is this vision that drove PhysicsWallah to the league of a handful of profitable edtechs.

Not less than 80% of the equity in PhysicsWallah still rests with Maheshwari and Pandey, unlike many new-age internet companies where founders hold low, single-digit stakes. But why? “This helps us stay the course to reach markets that are unserved or underserved by edtech firms and a massive pool of talent remains untapped.”

In fact, PhysicsWallah has become the first edtech company to go public in India, raising INR 3,480 Cr. The IPO comprised fresh shares of INR 3,100 Cr and an OFS component of INR 380 Cr.

While the two cofounders sold a part of their shares, none of the VCs who have so far infused over $200 Mn into PhysicsWallah, diluted their stakes in the $3.6 Bn IPO. The company hopes to be valued at INR 31,500 Cr, at a P/E multiple of 9.5x, after the shares go listed on November 18.

The socialist-capitalist duo, now members of India’s 258 to 384-strong billionaire club, together own stakes worth INR 11,458 Cr in the edtech startup. “We haven’t entered the billionaire club as is being reported now. We were already billionaires. Yet, both of us live in rented houses.”

Maheshwari’s claim of “simple living” resonates with the company squarely focussing on affordable education for the less privileged sections of the society at a fee which is almost 100% cheaper than what their competitors charge.

Pandey, on his part, connects with the audience through his YouTube channel, with 13,943,645 subscribers and 3 Bn views. While Pandey still teaches many batches for free and draws an increasing number of students, Maheshwari perfected the art of monetisation.

Playing The Affordability Card

The company, Maheshwari said, draws nearly 52% of its revenues from online test prep space where students get mentorship, revision, and doubt solving session services.........

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