Physics Wallah (PW), the edtech unicorn, has successfully concluded its Series B funding round, securing $210 million through a combination of primary and secondary transactions. The funding was led by Hornbill Capital, with participation from Lightspeed Venture Partners and existing investors GSV Ventures and WestBridge Capital.

This latest investment has pushed the company’s post-money valuation to $2.8 billion, marking a 2.5x jump from its previous valuation of $1.1 billion.

Founded by educator-turned-entrepreneur Alakh Pandey in 2016, Physics Wallah had previously raised $102 million from WestBridge and GSV Ventures during its first funding round. The recent funding round is one of the largest capital raises in the edtech sector, highlighting renewed investor confidence as the industry adapts to hybrid learning models combining traditional and digital methods.

After a significant drop in investment during 2023, where edtech funding in India fell to $321 million from a peak of $4.1 billion in 2021, this fresh funding signals a positive turnaround. According to a report by Tracxn, year-to-date funding for the Indian edtech sector stands at $215 million, reflecting a slow but steady recovery.

The decline in funding was partly attributed to the reopening of educational institutions post-pandemic and challenges faced by key players like Byju’s, which faced corporate governance and financial issues. However, despite the recovery signs, the sector still faces challenges, as 2023 saw an 87% drop in funding compared to the $2.4 billion raised in 2022.