What is Physics Wallah's STRATEGY?

Summary

The video script tells the story of Alakh Pandey, the founder of Physics Wallah, an EdTech unicorn in India, valued at 8,000 crore rupees. It highlights the company's unique approach to education, focusing on affordability and quality, which has garnered a massive following among students. The script also discusses the challenges faced by the company, including its dependence on Pandey's personal brand and the competitive landscape of the EdTech industry. It concludes with a special Diwali offer from Kuku FM, an audio book app, which provides a 50% discount on its premium subscription and a chance to win valuable gifts.

Takeaways

• 🌟 Alakh Pandey, the physics teacher and founder of Physics Wallah, has become a celebrity figure among students, with a reputation that differs from other EdTech companies like Unacademy and BYJU's.
• 📈 Physics Wallah has achieved a valuation of 8,000 crore rupees and is known for its affordable education, which has influenced the pricing strategies of competitors.
• 🎓 The company's success is attributed to three main factors: affordability, effective marketing through Alakh Pandey's personal brand, and strategic business expansion focusing on competitive exams like IIT-JEE and NEET.
• 🤔 There are concerns about the sustainability of Physics Wallah's business model, especially regarding its low pricing and the potential for increased costs as the company grows.
• 🏆 Physics Wallah's low-cost courses have been a game-changer, forcing other EdTech platforms to reconsider their pricing to remain competitive.
• 📚 Alakh Pandey's personal involvement in teaching and his popularity among students have significantly reduced the company's marketing expenses compared to competitors.
• 🔄 The dependence on Alakh Pandey as the face of the company presents a potential risk, as businesses reliant on a single individual can face challenges if that person departs.
• 👥 The company's growth strategy includes careful selection of educators who are not only subject matter experts but also effective communicators.
• 💼 Alakh Pandey and Prateek Maheshawari's business approach focuses on expanding into post-graduate test preparation, avoiding the broad category approach of competitors.
• 🛍️ Physics Wallah has recently ventured into new market segments, such as UPSC and GATE exam preparation, signaling a diversification of their educational offerings.
• 🎁 The script also promotes a Diwali offer from Kuku FM, highlighting the use of audio book summaries as an efficient way to consume content, with a special discount and a chance to win valuable gifts.

Q & A

What is the education revolution referred to in the script?

The education revolution mentioned in the script refers to the impact made by Physics Wallah (P.W.), an EdTech company in India, which is changing the way education is delivered, particularly for competitive exams like NEET and IIT JEE, by offering affordable and quality education.

Who is Alakh Pandey and what is his role in the EdTech revolution?

Alakh Pandey is the founder of Physics Wallah, an EdTech unicorn in India. He started as a physics teacher and has grown his company to a valuation of 8,000 crore rupees. He is known for his teaching skills and has a significant influence on students, almost like a celebrity, which has contributed to the success of his company.

What differentiates Physics Wallah from other EdTech companies like Unacademy or BYJU's?

Physics Wallah is differentiated by its focus on affordability and quality education, as well as the personal connection that Alakh Pandey has with his students. Many students view P.W. as an emotional connection rather than just a business, unlike Unacademy or BYJU's.

How has Physics Wallah managed to grow its user base and popularity?

Physics Wallah has grown its user base and popularity through Alakh Pandey's personal teaching on YouTube, which attracted a large following. The company also leveraged this popularity to promote its app during the Covid-19 pandemic when physical tuition centers were shut down.

What is the significance of the low pricing strategy of Physics Wallah's courses?

The low pricing strategy of Physics Wallah's courses has made quality education accessible to a larger number of students, which has helped the company to gain a competitive edge. It has also forced other EdTech companies to lower their prices.

What role did Prateek Maheshawari play in the growth of Physics Wallah?

Prateek Maheshawari, an IIT-BHU graduate, played a crucial role in the growth of Physics Wallah by launching the business with Alakh Pandey. He also helped launch the company's app during the Covid-19 pandemic, which contributed to its rapid growth.

What are the challenges that Physics Wallah might face in the future?

Physics Wallah might face challenges such as sustaining its affordability model as it scales, the risk of losing star teachers to competitors, and the dependency on Alakh Pandey as the face of the company, which could be risky if he were to leave.

How does Physics Wallah's marketing strategy differ from that of its competitors?

Physics Wallah's marketing strategy relies heavily on Alakh Pandey's personal popularity and the organic growth from his YouTube channel, rather than spending heavily on celebrity endorsements like Unacademy does with Shahrukh Khan.

What is the significance of the Diwali gift mentioned in the script?

The Diwali gift mentioned in the script is a promotional offer from Kuku FM, an app that provides audio book summaries. The offer includes a 50% discount on the premium subscription and a chance to win gifts worth up to 10 lakhs.

How does Physics Wallah plan to expand its business?

Physics Wallah plans to expand its business by focusing on post-graduate test preparation, launching new categories such as UPSC Wallah for UPSC aspirants and GATE Wallah for engineers, and acquiring smaller companies to improve their offerings.

What is the potential risk of Physics Wallah's dependence on Alakh Pandey?

The potential risk of Physics Wallah's dependence on Alakh Pandey is that if he were to leave the company, it could significantly impact the company's brand, student base, and growth, as he is a major draw for students.

Outlines

00:00

🚀 The Rise of Physics Wallah and Alakh Pandey

This paragraph introduces Alakh Pandey, the founder of Physics Wallah, an EdTech unicorn in India valued at 8,000 crore rupees. Pandey started as a tutor and has now revolutionized the education sector with affordable, high-quality teaching. Despite not being a traditional celebrity, he has amassed a significant following, with students viewing his platform as an emotional connection rather than just a business. The paragraph also discusses the challenges faced by the company, such as sustainability of their model and dependence on Pandey himself. It outlines the company's journey, from Pandey's first teaching job to the growth of Physics Wallah's YouTube presence and the launch of their app, which capitalized on the Covid-19 pandemic to gain significant traction.

05:02

🌟 Alakh Pandey's Cult Following and the Impact of Affordability

The second paragraph delves into the personal connection students have with Alakh Pandey, drawing parallels with celebrity fandom. It emphasizes the affordability of Physics Wallah's courses, which has not only attracted students but also influenced the pricing strategies of competitors. The paragraph highlights the company's marketing approach, which relies heavily on Pandey's personal brand rather than traditional celebrity endorsements. It also discusses the company's expansion into new categories, such as UPSC and GATE preparation, and the strategic acquisitions made to enhance their offerings. The narrative stresses the importance of quality educators and Pandey's hands-on approach to hiring, which has contributed to the company's success.

10:02

🤔 Challenges and the Future of Physics Wallah

The final paragraph addresses the potential challenges that Physics Wallah may face, including the sustainability of their low pricing model, the risk of losing star teachers to competition, and the heavy reliance on Alakh Pandey as the face of the company. It acknowledges the company's rapid growth and impact on the EdTech industry but also poses critical questions about its long-term viability. The paragraph concludes with a reminder of the promotional Diwali offer for the Kuku FM app, which provides a 50% discount on its premium subscription and a chance to win valuable gifts, reinforcing the educational theme of the video while offering a tangible benefit to viewers.

Keywords

💡Education Revolution

The term 'Education Revolution' in the script refers to a significant change or transformation in the way education is delivered, particularly in the context of P.W. in Kota. It signifies the impact of innovative teaching methods and the use of technology to make education more accessible and effective. The script mentions that this revolution is driven by the youth and is unstoppable, highlighting the empowerment of students through education.

💡Alakh Pandey

Alakh Pandey is the founder of an EdTech unicorn in India, known as Physics Wallah. He started as a tutor in a local coaching institute and has since grown to become a prominent figure in the Indian education sector. In the script, Pandey is portrayed as a charismatic physics teacher who has gained a massive following among students, almost akin to a movie star, which underscores his influence and the emotional connection students have with him.

💡EdTech

EdTech, short for Educational Technology, refers to the use of technology to enhance or facilitate learning and teaching. In the script, EdTech companies like Physics Wallah, Unacademy, and BYJU's are revolutionizing the education industry by offering online learning platforms. The script discusses how Physics Wallah is changing the EdTech industry by providing quality education at low prices.

💡NEET and IIT JEE

NEET (National Eligibility cum Entrance Test) and IIT JEE (Indian Institutes of Technology Joint Entrance Examination) are two of the most prestigious and challenging entrance exams in India for medical and engineering studies, respectively. The script highlights that Physics Wallah's students have had significant success in clearing these exams, which is a testament to the effectiveness of their teaching methods.

💡Affordability

Affordability in the context of the script refers to the pricing strategy of Physics Wallah's courses, which are significantly lower than those of competitors like BYJU's and Unacademy. This strategy has made high-quality education accessible to a larger number of students, forcing competitors to lower their prices as well, and is a key factor in Physics Wallah's rapid growth.

💡Marketing

Marketing, as discussed in the script, is a crucial aspect of how EdTech companies promote their services. Physics Wallah has a unique marketing advantage due to Alakh Pandey's popularity and the organic growth from his YouTube channel, which has reduced their marketing expenses compared to competitors who rely on celebrity endorsements.

💡YouTube Channel

The YouTube channel of Alakh Pandey has played a pivotal role in the growth of Physics Wallah. It serves as a platform for teaching physics and has garnered a large following, which has translated into a strong brand presence and user base for the company. The script mentions that by 2020, Physics Wallah became India's biggest IIT-JEE channel on YouTube.

💡Investors

Investors in the script refer to the financial backers of Physics Wallah, such as Westbridge and GSV Ventures. They provide the necessary capital for the company to expand its offerings, hire new teachers, and enter new markets. Their support is instrumental in the company's ability to launch new categories like UPSC Wallah and GATE Wallah.

💡Poaching

Poaching, in the context of the script, refers to the practice of luring away key employees or teachers from competitors. It is a common challenge in the EdTech industry, where the success of a company is heavily reliant on the quality of its educators. The script mentions an instance where Physics Wallah accused Unacademy of poaching one of their star teachers.

💡Dependence on Alakh Pandey

The script discusses the potential risk of Physics Wallah being overly dependent on Alakh Pandey as the face and driving force behind the company. This dependence could pose a challenge if there were changes in his role or if he were to leave the company, as his popularity and connection with students are significant factors in the company's success.

💡Kuku FM

Kuku FM is mentioned in the script as an app offering audio book summaries and other audio content. It is used as an example of a promotional offer related to Diwali, where users can get a discount on premium subscriptions and have a chance to win various gifts. This serves as a marketing plug within the script, illustrating the use of special occasions for promotional activities.

Highlights

Alakh Pandey, the physics teacher turned EdTech unicorn founder, has revolutionized education in Kota, India, with a youth-driven movement that is challenging traditional EdTech companies.

Physics Wallah, founded by Alakh Pandey, has achieved a valuation of 8,000 crore rupees, becoming a significant player in the Indian EdTech industry.

Students view Physics Wallah as an emotional connection rather than a business, setting it apart from competitors like Unacademy and BYJU's.

Physics Wallah's affordability and quality education have led to 10,000 students clearing NEET or IIT JEE, India's toughest exams.

The company's low-cost model is forcing other EdTech companies to reduce their prices, impacting the industry's pricing structure.

Alakh Pandey's personal popularity and YouTube presence have eliminated the need for traditional marketing, saving costs for Physics Wallah.

Physics Wallah's app launch during the Covid-19 pandemic capitalized on the shutdown of physical tuition centers, leading to over 50 lakh downloads.

The company's expansion strategy focuses on India's competitive exam market, targeting IIT-JEE, NEET, and now UPSC and GATE exams.

Physics Wallah's growth has been supported by investors Westbridge and GSV Ventures, enabling the launch of new categories and services.

The company's approach to hiring emphasizes not just subject expertise but also effective communication skills in educators.

Physics Wallah's business model faces challenges such as maintaining affordability while expanding and attracting top talent.

The EdTech industry's competitive nature poses risks of teacher poaching, which could impact Physics Wallah's reputation and offerings.

Alakh Pandey's central role in Physics Wallah raises concerns about the company's dependency on a single personality for its success.

The company's future growth hinges on its ability to balance emotional connections with students and the practical demands of the business world.

Physics Wallah's success story has inspired a loyal following, with students viewing the company as more than just an educational platform.

The company's innovative approach to education and business has the potential to redefine the EdTech landscape in India.

Transcripts

Watch these videos.

"Every power in the world is trying to stop the education revolution of P.W. in Kota

But this revolution is not us, it's you who are running it.

This revolution is run by the youth of this country.

No one has the courage to stop it."

He is not a movie star or a cricketer.

He is a physics teacher.

He is Alakh Pandey,

who used to be a tutor in a local coaching institute in the past.

And today, he is the founder of an EdTech unicorn in India.

Its valuation is 8,000 crore rupees.

If you notice the comment section of his videos,

you will see that students have become huge fans of him.

Almost as if he was a movie star.

His reputation in the market is very different from other the EdTech companies.

Like Unacademy or BYJU's.

Many students say that P.W. is not a business.

It is an emotion.

P.W. says that it is changing the EdTech industry of India completely.

Because he is teaching kids at low prices ensuring quality with it.

Recently, P.W. claimed that

its 10,000 students have cleared either NEET or IIT JEE, two of India's toughest exams.

Some experts are raising questions by saying that

The model of P.W. is very good right now,

but will they be able to execute this model for a long time?

They say that Physics Wallah will have to face the same problem

that Unacademy and BYJU's have faced.

It's just that Physics Wallah has not faced those problems yet.

And there is one thing that is both positive and negative for Physics Wallah

And that is: the dependence on Alakh Pandey.

Will Physics Wallah be able to grow in the future as well?

Or will it have to face some problems?

We will talk about this in this video.

Before we start, I want to tell you that

there is a special Diwali gift for you

which I will tell you about after some time.

But first, let's talk about the journey of Physics Wallah.

In class 11th, he had taken up his first job as a teacher

in a local coaching institute in Allahabad.

as his financial situation at home was not that good.

After he began teaching, there was a huge impact on him.

"When I got a response from those 11 kids,

I saw that I have changed their lives by teaching them.

So I found that more beneficial for my skills."

That's why after dropping out of an engineering college,

he started teaching at a coaching center.

Students had a very good response to his teaching.

And in 2014, he started a YouTube channel

where he taught physics to kids.

Until 2017, he continued to teach offline.

After that, he decided that he'd teach full-time only on YouTube

And by 2020, Physics Wallah became India's biggest IIT-JEE channel on YouTube.

In the journey of the Physics Wallah, you might have heard only of Alakh Pandey.

But there is one more person who played an important role in the journey of the Physics Wallah.

He is Prateek Maheshawari.

After graduating from the IIT-BHU, he launched a number of startups.

One of them is Night Panda, a late night food delivery app.

In 2019, he met Alakh Pandey and decided to launch a business.

After a few months, Covid broke out.

Because of which, the physical tuition centers were shut down.

In June 2020, when Covid was at its peak,

Physics Wallah launched his app on Android.

And he used his YouTube popularity to promote the app.

Because of which, the app has more than 50 lakh downloads today.

Now, Physics Wallah has more than 10 channels on YouTube.

And the main Physics Wallah channel has around 90 lakh subscribers.

And if I talk about my channel, then only half of you have subscribed to our channel.

So, if you like our content, then do subscribe.

So that we too can grow, just like Physics Wallah.

In the last video, we talked about why companies like BYJU's are in such a big problem.

What were the reasons that helped PW grow to such an extent?

Basically, three.

First was affordability.

This is a one-year NEET course.

It costs 1 lakh rupees in BYJU's, Rs. 68,000 in Unacademy, and Rs. 60,000 in Vedantu.

For comparison Physics Wallah had launched its first course for just 999 rupees, two years ago.

After that, he launched several courses-

the average price of which is 3,500 thousand rupees.

And this is not just for competitive exams.

The other courses of PW, like those for the 9th and 10th grade students,

are around 60% cheaper than the courses of Unacademy and BYJU's.

Since the courses of PW are priced so low,

other companies are being forced to lower their prices.

For example, a few months ago, Vedantu launched a new course for just 5,000 rupees.

And obviously, PW's investors are very happy with this.

They also believe that 90% of Indian students are still not using EdTech platforms.

If they start using them, then companies like PW can grow much more.

The second reason was PW's marketing.

BYJU's needed Shahrukh Khan for marketing their company.

"BYJU's classes.

If you have a good tuition, then you have a good result.

Attend a free class now."

But for PW, it's star was not Shahrukh Khan, but Alakh Pandey himself.

Since Alakh Pandey had his own thriving YouTube channel,

and since he was so popular among his students,

he didn't have to spend so much on marketing.

So, during the last financial year, both Unacademy and PW earned around 300-400 crores.

While Unacademy spent 414 crores on marketing,

PW's spending was almost zero.

Because they had a popular YouTube channel.

But will this hold true in the future too?

Alakh Pandey says that when he started his YouTube channel,

he didn't have any plans to launch a company.

And this became his advantage.

The children believe that their relation is not like that of a business and customer's

They have a teacher and student relationship.

For example, a student from West Bengal said that he has been watching PW's videos for the last 3 years.

And he never felt that he was trying to sell something.

Which is different from other platforms.

This is why Alakh Pandey has somewhat of a cult following.

Almost as if is not a teacher, but Salman Khan!

And just like PW, I'm sure you too, want growth in your life.

And you can do that by adopting good habits and removing bad habits.

James Clear has also talked about this in his famous book, Atomic Habits.

About how we can make a 1% change in our life daily

which will be very beneficial to us in the future.

And you don't need to read the whole book.

Because there's a 102 minute audio book summary of this book on the Kuku FM app

Which means you'll get a summary of less than 2 hours of this book

Kuku FM has many more audio books that both adults and kids can listen to .

On this app, you'll get many types of audio books-

Like self-help, motivation, entertainment, and biographies.

Now, I want to tell you about that special Diwali gift.

As a part of Kuku FM's Diwali sale, you can get 50% off on its premium subscription.

And you also have a good chance of winning gifts worth 10 lakhs.

Like vouchers, gold coins, or cars.

And the deadline for these gifts and discount is 25th October.

So click on the link in the description below.

Use the Diwali 50 coupon code and make this Diwali prosperous with Kuku FM.

*How should our sir be? Like Punit sir!*

How should our sir be? Like Punit sir!

This is not happening in an election rally, but in an Ed-Tech company.

In the world of education, the best teachers are the stars.

That's why many Ed-Tech companies are competing against each other to hire the best teachers.

And this is what PW is doing.

Alak Pandey has seen for himself how teachers can affect students.

Alakh Pandey also says that he personally inspects every educator before hiring them in PW

He says that teachers shouldn't just be experts in their subject.

They should also be able to communicate better.

"Hello, GW soldiers! Welcome to this channel.

I want to tell you a few things..."

And this is also the reason why PW has been so successful.

The third factor is the way Alak Pandey and Pateek Maheshwari have expanded PW's business.

They decided to focus on India's two biggest competitive exams-

IIT-JEE and NEET.

Every year, around 20-25 lakh students appear for these exams

After IIT-JEE and NEET, they thought about what else the students required

Now, everyone knows that India is a country of competitive exams.

Be it the public bank, the army, or the civil services.

We have to give an entrance exam for everything.

And PW wants to enter this market.

This month, PW launched the UPSC Wallah for UPSC aspirants.

"For 7,000 rupees, PW will prepare students for UPSC with the best teachers in India."

And this is just the beginning of the post-graduate category for PW.

PW has also recently launched the GATE Wallah for engineers.

Now, to launch these new categories, you need a lot of money.

Because you have to create a new team and hire new teachers.

And PW is able to do this through its investors, Westbridge and GSV Ventures.

Alakh Pandey also says that he doesn't want to focus on K-12 education,

the areas where BYJU's and Unacademy are focusing on.

Rather, he wants to focus on the post-graduate test preparation right now

PW probably doesn't want to do what Unacademy did.

According to many Ed-Tech experts, Unacademy was trying to dominate many different categories.

Because of this, they bought many companies.

Companies like CodeChef, PrepLadder, Mastree, Coursavy and NeoStencil

were bought by them in 2020.

But peobably, PW doesn't want to adopt this strategy.

They're just buying small companies that can make their products better.

Recently, they acquired a doubt-solving startup, FreeCo,

to improve the doubt-solving feature of their app.

The PW supporters, especially kids who have benefited greatly from it,

believe that no one can stop PW now.

But irrespective of what we believe, PW is a company.

And that too, in an industry which is not easy to crack.

In fact, the three things that we spoke about, that have made PW grow so fast,

can become PW's problem as well.

For example, The first point is that of affordability.

The prices of PW are low right now.

But if they want more teachers in the future,

and if they have to open offline centers, it'll cost money.

And if you want good teachers, you'll have to give them a good package.

Will PW be able to do both- earn profits as well as provide cheap courses for the students?

The second challenge is about star teachers.

It's a challenge that all companies are facing

In a previous video, we talked about how Physics Wallah Unacademy and Akash

are fighting with each other to recruit teachers in Kota.

If PW is hiring star teachers, it's also possible that other companies will poach the star teachers of PW.

And in fact, this has happened.

Last year, the Physics Wallah had alleged that Unacademy had poached its star teacher, Tina Chopra.

Both companies had testified against each other.

But unfortunately, it's normal to poach each other's teachers in Ed-Tech business

On the other hand, some people say that PW's own model is the same

They offer grand salaries to star teachers and get them to join their company.

And the students are also coming to Physics Wallah for these teachers.

In fact, one expert said that Physics Wallah is like Unacademy on drugs.

Because Unacademy also uses the same tactic to grow.

But PW is using it even more.

PW's chief strategy officer, Abhishek Mishra, did admit

that his company has given offers to the teachers of other tech companies.

But he won't be branding that as "poaching".

The success of any Ed-tech company depends on its teachers.

And the same will happen with PW.

So now we'll have to see if the star teachers of PW will stay with PW or not.

The third problem might be Alakh Pandey.

"Hello, kids!"

Alakh Pandey is the star of PW.

There's no doubt about it.

Because of this, PW didn't have to spend much on marketing.

This also means that PW is very dependent on Alakh Pandey.

And if any business is dependent on just one person, then it can be very risky for that business.

Alakh Pandey has shown that he can attract lakhs of students with his popularity.

But will those lakhs of students stay with PW if Alakh Pandey doesn't stay with PW?

There's no doubt that PW has made a huge impact in the Ed-tech industry.

Many of us can't even imagine making such a big company with a small YouTube channel.

But now, they'll have to treat it like a business.

They'll have to face the same challenges that many companies face.

Their students say that Physics Wallah is not a company, it's an emotion.

But it was my responsibility to evaluate them as a company, not as an emotion.

Check out the KuKu FM app, the link is in the description.

You can also get a 50% discount on its premium subscription on the occasion of Diwali.

And you can win gifts worth up to Rs 10 lakhs.

Like gold coins, vouchers, or cars.

Hopefully, you liked this video.

If you liked this video, then please subscribe.

If you liked this video, then do watch the video about Kota.

We talked about how PW, Unacademy, and Allen are fighting for teachers in Kota.

If you watched this video, then watch a new one about Yeti.

To know if Yeti is real or not.