The edtech sector is adopting a new mantra for success: efficient customer acquisition over high marketing spends. According to Dev Khare, partner at Lightspeed India, companies which are successful today, like Physics Wallah, Seekho, and Bhanzu, have shifted to low-cost, scalable customer engagement strategies, marking a departure from the pre-pandemic focus on aggressive sales and marketing expenses.
“Edtech firms which scaled pre-pandemic, faced challenges with unsustainable sales and marketing costs. They heavily relied on platforms like Google, Facebook, and big-budget branding, but struggled to recoup those expenses,” Khare told FE.
Post-pandemic funding challenges have accelerated the transition. “Physics Wallah exemplifies the new playbook,” Khare said. By offering free educational content on platforms like YouTube, Physics Wallah has built a massive audience, creating a cost-effective organic funnel for its premium services. “Their YouTube-first approach attracts 80 million monthly visitors even today,” he added.
Physics Wallah’s offline expansion strategy further illustrates its efficiency. Unlike traditional coaching hubs concentrated in places like Kota, the company leverages online data to identify demand clusters across India, filling new centres within weeks. Moreover, by training teachers internally, it minimises attrition and dependence on high-profile educators.
Lightspeed India’s optimism about the education market is evident in its recent investments. The firm led Physics Wallah’s $210 million Series B round, valuing the company at $2.8 billion, and acquired a 1.8% stake alongside a board observer role. It also backed platforms like Seekho and Bhanzu, reflecting confidence in the education dynamics.
“India’s focus on education spend is unparalleled globally, making it a resilient and exciting market,” Khare noted.