No income, race, or geography privilege here.
Alakh Pandey built a $1 BILLION startup on YouTube from a small impoverished village.
Here's his underdog story:
Alakh Pandey built a $1 BILLION startup on YouTube from a small impoverished village.
Here's his underdog story:
In <2 years, Physics Wallah hired 1,900 employees, 500 of which are teachers.
They now have 5.2 million users on the app with a 4.7 rating.
They now have 5.2 million users on the app with a 4.7 rating.
Physics Wallah runs more than 20 offline centers spread across 18 cities in India.
In just 2 years, the company was valued at >$1B
And best of it all, it was profitable and built on students' goodwill.
In just 2 years, the company was valued at >$1B
And best of it all, it was profitable and built on students' goodwill.
What surprised most people was that the courses were atrociously underpriced.
While ed-tech giants in India like Byju's ($23B) and Unacademy ($3B) were selling their courses for $300+
PhysicsWallah sold them for a mere $12.
While ed-tech giants in India like Byju's ($23B) and Unacademy ($3B) were selling their courses for $300+
PhysicsWallah sold them for a mere $12.
In June 2020, Alakh and his co-founder Prateek Maheshwari launched the PhysicsWallah (PW) app.
The app was an attempt to build a business on a freemium model.
Students could always study from the PhysicsWallah YouTube Channel, but courses within the app were much better.
The app was an attempt to build a business on a freemium model.
Students could always study from the PhysicsWallah YouTube Channel, but courses within the app were much better.
but it all started when Alakh was in middle school. Alakh was born in a poor household.
To support his family, Alakh started side hustles with his school.
He'd cycle ~10km every day after school to go and teach younger students, only to get 200INR/month (that's just $2.5)
To support his family, Alakh started side hustles with his school.
He'd cycle ~10km every day after school to go and teach younger students, only to get 200INR/month (that's just $2.5)
By the 3rd year of his graduation, he realized that college wasn't getting him anywhere.
The labs were unserviceable, and the syllabus was outdated.
On the flip side, his teaching side hustle was doing good. And he enjoyed teaching. So, he decided to drop out of college.
The labs were unserviceable, and the syllabus was outdated.
On the flip side, his teaching side hustle was doing good. And he enjoyed teaching. So, he decided to drop out of college.
During this time, to survive he had to take money from his sister.
That was the only source of money for some time. But things were about to get in place for him.
That was the only source of money for some time. But things were about to get in place for him.
He decided to teach full-time.
He began teaching Physics at a coaching institute in Kanpur called Softways.
Students loved his teaching style.
The institute head was so impressed with his teaching that he advised Alakh to start a YouTube channel.
He began teaching Physics at a coaching institute in Kanpur called Softways.
Students loved his teaching style.
The institute head was so impressed with his teaching that he advised Alakh to start a YouTube channel.
This way more students could benefit from his teaching.
So in 2014, the PhysicsWallah YouTube channel was born.
But the result of this attempt was really cold.
So in 2014, the PhysicsWallah YouTube channel was born.
But the result of this attempt was really cold.
Alakh was skeptical of online education and thus focused his efforts on teaching at the coaching center.
Despite only uploading videos occasionally, after 3 years, his channel gained around 4,000 subscribers. He was half-assing it.
But then, he got a sudden realization -
Despite only uploading videos occasionally, after 3 years, his channel gained around 4,000 subscribers. He was half-assing it.
But then, he got a sudden realization -
"If I want to teach a huge number of students and create an impact, I can't do it just by teaching offline.
That's when, in 2016, Alakh started taking his channel seriously.
The growth was slow.
That's when, in 2016, Alakh started taking his channel seriously.
The growth was slow.
In 2017, he thought of doing something different. He started teaching sophomores in India.
It was a very small group and no one was teaching them, so he decided to help them.
It was a very small group and no one was teaching them, so he decided to help them.
Doing this helped him gain 10k subscribers in just one year.
Until now, he was teaching offline as well as shooting videos for his channel.
One of his friends told him he could monetize his YouTube channel with Ads. He tried it and made his first 8000 INR (~$100) from it.
Until now, he was teaching offline as well as shooting videos for his channel.
One of his friends told him he could monetize his YouTube channel with Ads. He tried it and made his first 8000 INR (~$100) from it.
With his savings from his offline teaching job, and YouTube ads revenue, he decided to leave the coaching institute and become a full-time YouTuber.
His father disapproved of his decision.
But, little did he know what was unfolding.
His father disapproved of his decision.
But, little did he know what was unfolding.
On YouTube, PhysicsWallah grew like crazy.
Students loved his teaching style, and that propelled his channel from 10k subscribers in 2017 to 2 million in 2019.
Students loved his teaching style, and that propelled his channel from 10k subscribers in 2017 to 2 million in 2019.
When Covid hit, students demanded an all-in-one platform for all PW content.
Alakh found his co-founder Prateek Maheshwari in 2019. Prateek took on the job of CTO.
In June 2020, Alakh and his team launched the PW app.
Alakh found his co-founder Prateek Maheshwari in 2019. Prateek took on the job of CTO.
In June 2020, Alakh and his team launched the PW app.
The first two days were an uphill task for the tech team -
Day one: A massive influx of users caused the app to crash.
Day two: Similar thing happened
But, despite these technical difficulties, the app was downloaded by 300,000 people within one week.
Day one: A massive influx of users caused the app to crash.
Day two: Similar thing happened
But, despite these technical difficulties, the app was downloaded by 300,000 people within one week.
Edtech powerhouses like Byjus and Unacademy offered courses at exorbitant prices.
But Physics Wallah undercut them severely and started offering courses from 999 rupees (~$12).
This was a significant threat to Unacademy.
But Physics Wallah undercut them severely and started offering courses from 999 rupees (~$12).
This was a significant threat to Unacademy.
As a result, they made a $5M/year offer to Alakh.
They offered him a "JOB"
He refused it and kept working on the business.
They offered him a "JOB"
He refused it and kept working on the business.
The result?
They teach more than 10 million students on their YouTube channels.
They teach in regional languages as well as the popular languages - Hindi and English in India.
They teach more than 10 million students on their YouTube channels.
They teach in regional languages as well as the popular languages - Hindi and English in India.
In June 2022, PhysicsWallah raised $100 million in its Series A funding.
The two-year-old firm and the six-year-old YouTube channel are now valued at $1.1 billion.
Revenue of PhysicsWallah jumped close to 10-fold in 2022
The two-year-old firm and the six-year-old YouTube channel are now valued at $1.1 billion.
Revenue of PhysicsWallah jumped close to 10-fold in 2022
Alakh Pandey might be a teacher but he has solid business fundamentals.
He revolutionized education by reaching out to millions of students in a sustainable & affordable way.
He revolutionized education by reaching out to millions of students in a sustainable & affordable way.
But that's not it, Alakh is also involved in a number of welfare works as well.
- Provides aid to orphanages & other NGOs
- Funded the entire education of 200 students from his hometown
- Paid for the cancer treatment for a family member of his student
- Provides aid to orphanages & other NGOs
- Funded the entire education of 200 students from his hometown
- Paid for the cancer treatment for a family member of his student
This story has two key lessons:
1. Stick to your passions, as it's your competitive advantage.
2. Undercutting your competitors while dangerous, can be very lucrative if properly.
1. Stick to your passions, as it's your competitive advantage.
2. Undercutting your competitors while dangerous, can be very lucrative if properly.
If you like this crazy story, go retweet the first tweet.
And, follow me
@jspeiser for more interesting threads on startups and underdogs.
And, follow me
@jspeiser for more interesting threads on startups and underdogs.
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