Daybreak How Physicswallah avoided the typical startup conveyor belt
Dec 3, 2025
Physicswallah's journey is a case study in frugality, having thrived on minimal funding while preserving founder ownership. As it shifts from a lean startup to aggressive scaling, the company faces the challenges of substantial growth and operational changes. The increasing ad spend and a spree of acquisitions raise questions about integration risks. Meanwhile, the founder's strong personal brand fuels loyalty but could also pose a risk. How will the company navigate this transition, balancing rapid expansion with its original ethos?
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Unusual Path To High Founder Ownership
- Physicswallah avoided typical startup dilution by raising very little and late at high valuations.
- That choice left founders with unusually high ownership but screened out early-stage VCs.
Uncommon Series A Unicorn Moment
- Physicswallah became a unicorn in its first institutional round when Westbridge wrote a Series A at a very high price.
- The founders then leaned on the same investors and avoided further dilution during the EdTech downturn.
Rapid Scaling Changed The Numbers
- The company scaled from ~50 employees to nearly 10,000 in two years and revenue jumped massively.
- Profitability in 2022 flipped to nearly ₹1,000 crore losses by 2024 as it scaled fast.