Physics Wallah and Aye Finance Secure Major Funding for EdTech and MSME Growth
Two Indian companies, Physics Wallah and Aye Finance, have raised significant funds to expand their operations. Physics Wallah (PW) raised $210 million in a Series B round, while Aye Finance secured ₹250 crore ($30 million) in Series G funding. These funds will help both companies grow in the education and financial sectors.
Physics Wallah, a profitable edtech company, raised $210 million in Series B funding, increasing its valuation to $2.8 billion. This round was led by Hornbill Capital and Lightspeed Venture Partners. Existing investors, including GSV and WestBridge, also contributed.
The funding will allow Physics Wallah to expand its reach in K-12 education and improve its content. The company also plans to merge with community-driven education platforms to strengthen its position in the market.
"This investment validates our efforts to make education accessible," said Alakh Pandey, Founder and CEO of Physics Wallah.
Physics Wallah creates over 9,500 hours of educational content each week. It serves students across 98% of India's pin codes. The new funds will help the company grow into vocational training and skilling sectors as well.
Aye Finance, a microlending platform, raised ₹250 crore in Series G funding led by ABC Impact. British International Investment, which led the company’s Series F round, also joined.
Aye Finance operates in 398 locations across 22 states, providing loans to micro and small businesses. The loans range from ₹50,000 to ₹10,00,000. The company has already disbursed over ₹7,600 crore to more than 5,76,000 businesses, with a 60% repeat customer rate.
In FY23, Aye Finance earned ₹623 crore in revenue and made a profit of ₹54 crore. By FY24, profits tripled to ₹161 crore, while revenue grew by 67%, reaching ₹1,072 crore. The company ended the year with ₹4,500 crore in assets and a low NPA of 1.21%.
Physics Wallah and Aye Finance are making big moves in their industries. Physics Wallah aims to provide affordable education, while Aye Finance focuses on helping small businesses grow. With new funding, both companies will be able to expand their operations and make an even bigger impact.