Amid Funding Crunch, Physics Wallah Lays Off Employees

Learning app Edtech unicorn Physics Wallah laid off 70 to 120 employees during a difficult funding environment, but plans to take on 1,000 more within six months.

Edtech firm Physics Wallah, a unicorn valued at over a billion dollars, has terminated around 70 to 120 employees on the basis of performance evaluation as part of the normal business processes. These layoffs form part of wider dynamics within the sector, whereby many Edtech startups have begun downsizing because of the difficult funding climate and more scrutiny from investors concerning spending.

Satish Khengre, Chief Human Resources Officer at Physics Wallah, announced in an official statement that a small percentage of employees, around 70 to 120, will be laid off as part of the company's mid-year assessment to restructure and ensure future survival in a competitive industry.

Noida's Physics Wallah became a unicorn by raising $100 million, valuing the company at $1.1 billion with support from Westbridge and GSV Ventures. Even though the business was profitable, current Edtech funding is cautious, with investors pushing for growth in loss-making startups.

“Physics Wallah” follows other Edtech players such as unacademy, Byju’s, and widantu who have also carried out cuts towards improving operational efficiency. Nevertheless, the firm remains hopeful about its prospects. “In the coming six months, we intend to add another 1000 work staff,” Khengre announced communicating growth indications.

As part of its expansion plans, Physics Wallah announced opening of new positions, as well as US $60 million acquisition of Indian educational company ShareTag over the next few months.