PhysicsWallah’s revenue jumps 161% to Rs 1,940 crore in FY24, losses widen to Rs 1,130 crore

IPO-bound edtech startup PhysicsWallah (PW) saw its operating revenue climb 161 percent from Rs 744 crore in FY23 to Rs 1,940 crore in FY24, regulatory filings showed. During the same period, the company’s losses widened more than 13X from Rs 84 crore to Rs 1,130 crore.

To be sure, the company had reported a profit of Rs 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.

Under IND AS, the company’s losses are higher because of non-cash expenses like Compulsorily Convertible Preference Shares (CCPS), the company spokesperson said. In FY23, PhysicsWallah had a cost of Rs 67 crore towards CCPS and that increased to Rs 756 crore in FY24 which pushed up losses in the previous financial year to Rs 1,130 crore.

The losses come at a time when the company is preparing to go public and has shortlisted bankers such as Axis Capital, Kotak Mahindra Capital, Goldman Sachs and JP Morgan for its $500 million IPO, Moneycontrol previously reported.