Edtech unicorn PhysicsWallah (PW) registered a massive 91 per cent plunge in its profit in the fiscal year that ended March 31, 2023.
The Alakh Pandey-led company saw its net profit nosedive to Rs 8.9 crore in the financial year 2022-23 (FY23) from Rs 98.2 crore in FY22, owing to a rise in its expenses, according to a report in leading startup news portal Inc42.
PhysicsWallah's operating revenue increased 234 per cent to Rs 779.3 crore in FY23 from Rs 233 crore in FY22. The startup's total revenue stood at Rs 804.6 crore in FY23, a 243 per cent increase from Rs 234.6 crore in FY22. The company saw its total expenditure increase a huge 671 per cent to Rs 794.5 crore in FY23 from Rs 103.1 crore in FY22, according to the report.
PW spent Rs 413.8 crore on employee benefits in FY23, a massive 878 per cent hike from Rs 42.3 crore in the earlier fiscal year. The edtech unicorn has been expanding its offerings aggressively over the last couple of years. In November last year, PW laid off 70 to 120 employees, a first job cut at the company which turned unicorn in 2022 with a $100 million round from WestBridge Capital and GSV Ventures.