Everyone keeps tossing around the word “unicorn” when they talk about startups, but what does that label really mean—especially for Indian edtech companies like Physics Wallah? There’s a lot of buzz on social media about Physics Wallah’s growth. Some say it’s the new poster child for affordable education, others swear it’s changed the game for competitive exam prep.
Numbers don’t lie: Physics Wallah crossed the magic billion-dollar valuation back in 2022, which officially put it in the unicorn league. That’s a huge deal in India’s startup world, where just a handful of companies finish that race. This wasn’t just good luck or hype; it was a mix of clever content, word-of-mouth from students, and an understanding of what Indian learners actually need.
But here’s the catch—unicorn status isn’t the only thing that keeps a company growing. There’s also a web of Indian government schemes behind the scenes, giving startups a push with funding, training, and easier rules. Physics Wallah got the timing right, but it’s the blend of quality teaching and smart business moves that made it stand out, not just the badge of being a unicorn.
- What Does Unicorn Status Mean?
- How Physics Wallah Started
- The Journey to Becoming a Unicorn
- Government Schemes Shaping Indian Startups
- Physics Wallah’s Place in Indian EdTech
- Takeaways for Future Entrepreneurs
What Does Unicorn Status Mean?
If you keep hearing about startups turning into unicorns, you’re not alone. In startup lingo, a “unicorn” is simply a privately held company valued at more than one billion US dollars. It’s called that because it used to be super rare. These days, though, the number’s going up, especially in India’s tech scene. Getting called a unicorn is like earning bragging rights, but it’s also a signal to investors and customers that things are really working.
Here’s a quick breakdown of what being a unicorn means for companies like Physics Wallah:
- They’re valued at over $1 billion but are privately owned (not listed on the stock exchange yet).
- That valuation comes from recent investments, not just revenue or profits.
- Unicorn status attracts more media attention, funding, and talent.
Back in 2013, the term was coined by Aileen Lee, a US venture capitalist, because such startups were as rare as that mythical animal. India entered the unicorn race a bit late, but caught up fast. According to a 2024 Tracxn report, India had over 100 unicorns, with about 20 in the edtech space.
| Metric | Number (India, 2024) |
|---|---|
| Total Unicorns | 110+ |
| Edtech Unicorns | 20 |
| Global Unicorns | 1,200+ |
But unicorn status isn’t everything. Some folks in the industry say it sometimes focuses too much on hype. As Nandan Nilekani, co-founder of Infosys, once put it,
“Sustainable growth matters more than just chasing big valuations.”
So, for startups in India, getting to unicorn status is impressive, but staying useful, affordable, and trusted by customers is the real finish line.
How Physics Wallah Started
It all started with one teacher and a whiteboard. Back in 2016, Alakh Pandey began uploading free physics lessons on YouTube. He wasn’t from a wealthy background or a fancy city, and that actually worked in his favor. His videos broke down tough science concepts using simple language, jokes, and practical examples—stuff regular students could relate to. No glitzy studios or heavy editing. Just real teaching that worked.
Within a couple of years, the channel exploded. By 2019, more than two million subscribers tuned in, not just for entertainment but for solid exam prep. JEE, NEET, board exams—if you were a student aiming high, you knew about Physics Wallah. The growth didn’t stop with YouTube. Alakh and his team listened to their audience—kids wanted more practice questions, detailed solutions, and low-cost courses. The demand pushed the team to launch the Physics Wallah app in 2020.
- Free and paid online courses for JEE, NEET, Board exams
- Interactive live classes and doubt-solving sessions
- Low-cost study material compared to traditional coaching giants
- Offline centers opening in smaller cities by 2022
The turning point? Making quality education affordable. Their crash courses sell for less than a pizza in most Indian cities. The audience grew fast—especially in tier 2 and 3 towns that big-name coaching classes always ignored.
| Year | YouTube Subscribers | App Users (millions) |
|---|---|---|
| 2019 | 2M | N/A |
| 2021 | 5M | 2.5M |
| 2023 | 9M | 6M |
The story here isn’t just about numbers. It’s about a simple idea—make top-notch content affordable and students will flock to you. That’s exactly how Physics Wallah flipped the Indian edtech scene and set itself up for unicorn status.
The Journey to Becoming a Unicorn
Physics Wallah didn’t just pop up as a unicorn overnight. It started small in 2016 with Alakh Pandey recording physics lessons on a basic YouTube setup. The goal was simple: help students crack tough Indian exams like JEE and NEET without breaking the bank. Alakh’s honest teaching style caught fire quickly. By 2020, the channel had millions of followers—kids in small towns and cities finally had a chance to learn tough concepts in their own language.
The biggest move came when Physics Wallah expanded from YouTube to its own app and website in mid-2020. Now, course subscriptions and mock test packages made solid revenue. In just two years, the team grew from a handful to over 2000 people, including teaching staff, tech folks, and operations. They covered subjects beyond physics and started live classes and offline coaching centers across India.
Check out some key facts on how Physics Wallah scaled up so fast:
- 2020: Launch of Physics Wallah app—50,000+ downloads in one week.
- 2021: Crossed 5 million YouTube subscribers; expanded to chemistry, math, and biology.
- 2022: Raised $100 million in Series A funding, hitting that unicorn $1 billion valuation.
- 2022-23: Opened over 30 offline centers in tier 2 and 3 cities.
| Milestone | Year | Impact |
|---|---|---|
| Started YouTube Channel | 2016 | Free physics lessons online |
| App Launch | 2020 | Monetized content, affordable courses |
| Unicorn Status | 2022 | $1B valuation after funding round |
| Offline Expansion | 2022-23 | 30+ learning centers launched |
The actual unicorn moment happened in June 2022. Physics Wallah snagged $100 million from investors led by WestBridge Capital and GSV Ventures. That funding didn’t just boost their value—it let them hire more teachers, amp up their tech, and make education even more accessible in smaller cities where coaching options were thin. Instead of going flashy, the team kept prices affordable and stuck to what worked: high-quality teaching with zero intimidation.
Government Schemes Shaping Indian Startups
If you’re following the Indian startup scene, you can’t ignore how much government schemes matter. The most well-known one is the Startup India initiative, launched back in January 2016. This scheme was a game changer—offering relaxed regulations, tax breaks, and easier patent filing. For a company to be recognized as a 'startup' under Startup India, it needs to be less than 10 years old and have a turnover under ₹100 crore in any previous financial year.
A lot of early-stage startups, including those in the Physics Wallah sphere, got off the ground because of just how accessible these policies made things. There’s a ton of help on offer, like:
- Startup India Seed Fund: This program gives up to ₹20 lakh as a grant for proof of concept, or ₹50 lakh for scaling up—all equity-free.
- Atal Innovation Mission: Aimed at building an innovative mindset, this supplies funding and support for school and college teams, not just companies.
- Stand Up India: This one’s focused on women and marginalized communities, offering bank loans between ₹10 lakh and ₹1 crore.
Take this—according to the Department for Promotion of Industry and Internal Trade, India counted over 1,12,000 recognized startups as of early 2025. That makes it the third-largest startup hub in the world after the US and China. The government created Startup India to push founders to dream big, and it’s paying off. Physics Wallah is a poster child—it benefitted from lighter tax rules, easier company registrations, and the general pro-startup mood.
Here’s a look at what matters most for startups under these schemes:
| Scheme | Main Benefit | Who Can Apply |
|---|---|---|
| Startup India | Tax breaks, patent support, easy licensing | Registered, young startups under 10 years old |
| Seed Fund | Up to ₹50 lakh funding, no equity taken | Early-stage startups with proof of concept |
| Stand Up India | Bank loans & support | SC/ST and women entrepreneurs |
As Vani Kola, a well-respected investor and managing director of Kalaari Capital, sums it up:
"Government support has simplified the starting line, but running the business marathon still takes grit and smart thinking."
If you’re eyeing the next big thing in Indian edtech or any sector, these schemes are the launchpad. Just remember: getting recognized is a big deal, but you’ll still have to hustle hard to build something that lasts.
Physics Wallah’s Place in Indian EdTech
Edtech in India is crowded, but Physics Wallah has clearly found its own lane. It started off with free YouTube classes by Alakh Pandey, who made tough physics concepts simple and clear. That clicked big time with students preparing for big exams like JEE and NEET. In just a few years, Physics Wallah exploded into a full-on learning platform with millions of users and its own app, which regularly ranks high in India’s education category.
This isn’t just another online coaching center. Physics Wallah focuses heavily on affordability, with course fees often less than a tenth of what traditional coaching giants charge. Even after raising big money and reaching unicorn status, the company stuck to its student-first pricing. That’s why it draws in kids from tier 2 and tier 3 cities—the ones usually priced out of top coaching classes.
The platform now covers more than just physics. It offers math, chemistry, biology, and even government exam prep. There’s a mix of live classes, recorded lectures, practice tests, and doubt-solving. While most competitors bet everything on English, a huge chunk of Physics Wallah’s content is in Hindi and other regional languages, making it more inclusive.
It’s not all sunshine, though. The space is getting tougher, with new government rules about edtech advertising, stricter content checks, and upstart rivals trying to grab a slice of the market. Physics Wallah’s practical, low-cost approach makes it stand out, but the road ahead depends on how well it adapts and keeps students hooked.
One thing’s for sure—Physics Wallah has reshaped Indian edtech by proving that quality teaching can be accessible, affordable, and still turn a profit. And that’s something a lot of new startups are trying to copy right now.
Takeaways for Future Entrepreneurs
Building something like Physics Wallah wasn’t about luck or just being the first. It’s proof that knowing what your users need and sticking to the basics—quality, affordability, and trust—matters more than flashy marketing. If you’re hoping to create the next big thing in India’s edtech or startup scene, here’s what you should be paying attention to.
- Physics Wallah didn’t throw money at problems; it focused on affordable pricing. Most courses are priced between ₹3,500 and ₹4,000, compared to others charging up to ₹50,000 for similar content.
- The company started with one YouTube channel in 2016. Today, it has over 10 million subscribers and more than 2,000 employees, mostly ex-students turned educators.
- A good chunk of its growth came from word of mouth among students in small cities—showing that understanding India’s “Bharat” market is essential.
- Government schemes matter. Programs like Startup India and MUDRA loans offer tax breaks, low-interest credit, and easier regulatory processes that lower the risk of starting up. PW grabbed these benefits when scaling offline coaching centers in Tier 2 and Tier 3 cities.
Check out this data snapshot of Indian unicorns and support schemes:
| Startup | Year Unicorn Status | Sector | Major Scheme Used |
|---|---|---|---|
| Physics Wallah | 2022 | EdTech | Startup India, Credit Guarantee Fund |
| BYJU'S | 2018 | EdTech | Startup India |
| Ola | 2015 | Transport | MUDRA Loan |
If you’re starting out, don’t just copy what’s trendy. Get into the weeds and find what real users can’t get anywhere else. Tap into those Indian government schemes—they’re not just for paperwork, but can make or break your margins. And don’t overlook smaller towns. The next decent-sized market is probably not sitting in Delhi or Mumbai, but in Bhopal or Nagpur.
