PhysicsWallah (PW) is set to become India’s most valuable edtech company with a $25 million Pre-IPO secondary funding round led by existing investor WestBridge Capital, pushing its valuation to $3.7 billion, according to sources.

The IPO-bound firm had a post-money valuation of $2.8 billion after its $210 million Series B funding last year. With this latest investment, PW’s valuation is expected to surpass Unacademy ($3.4 billion) and Eruditus ($3.1 billion) based on their last reported valuations. The Mint was the first to report on the secondary funding round. Along with WestBridge Capital, other investors, including high-net-worth individuals (HNIs), also participated.

A secondary funding round involves existing shareholders selling their stake to new investors, allowing early backers, employees, or founders to liquidate holdings without the company raising fresh capital.

According to Tracxn, WestBridge Capital holds a 6.3% stake in PW, while Hornbill Capital owns 2.9% and Lightspeed Venture Partners holds 1.8%. Another existing investor, GSV Ventures, owns 2.1%. Founder and CEO Alakh Pandey and Co-founder Prateek Maheshwari each hold 38.7% of the company.

The Noida-based edtech firm is gearing up for an IPO this year and is expected to file its draft IPO papers next month. In preparation, PW has made key leadership hires, including Ajinkya Jain as Group General Counsel, Company Secretary, and Compliance Officer.

In November 2023, PW also appointed former Blinkit CFO Amit Sachdeva as its Chief Financial Officer following its FY24 financial results. While the company saw a 2.6-fold increase in operating revenue, its losses widened due to rising employee benefit costs and other expenses.