Edtech unicorn PhyscisWallah saw its operating revenue rise to ₹ 1,940 crore in FY24 from₹ 744 crore in FY23, while the company’s losses widen sharply on the back of a rise in expenses, regulatory filings showed.
The company’s consolidated loss stood at ₹1,131.3 crore in FY24, up from ₹84.1 crore recorded in the earlier fiscal period.
The reported losses were impacted by non-cash adjustments, such as compulsorily convertible preference shares (CCPS), depreciation and amortization and ESOP expense. This CCPS expense is recorded in relation to the buyback clause provided in the CCPS issued, basis conversion of accounting standards from IGAAP to INDAS.
The company had reported a profit of ₹ 9 crore in FY23 under the generally accepted accounting principles (GAAP) reporting standards. However, the company has now re-adjusted its financials and adopted the India accounting standards (IND AS) reporting standards from previous financial years.
The company’s expenses surged to ₹ 3,279.1 crore in FY24 as compared to ₹ 862 crore in the year ago period. The sharp rise in expenses was driven by employee benefits, which jumped to ₹ 1,159 crore.
This comes at a time when the company is preparing to go public. Recently, PhysicsWallah raised $210 million on September 20, via a combination of primary and secondary transactions, led by Hornbill Capital, saw participation from Lightspeed Venture Partners, as well as existing investors WestBridge Capital and GSV Ventures.
The company has also diversified its offerings from school education to skilling and other test prep areas in the past couple of years.
Founded in 2020 by Alakh Pandey and Prateek Maheshwari, PW has over 55 lakh paid students, 4.6 crore YouTube channel subscribers.