PhysicsWallah (PW) is experiencing significant challenges as it prepares to become the first publicly listed Indian edtech company. A growing faculty crisis, marked by allegations of unfair terminations and a culture that values student ratings over educational quality, threatens its public launch.
Faculty attrition is particularly alarming, reportedly skyrocketing to 40.4% in FY24 before decreasing to 26% in FY25. Many former teachers have claimed they were terminated mid-year through “mutual separation” emails and are now pursuing legal action regarding their final settlements, raising concerns about PW”s image ahead of its IPO.
At the heart of the discontent lies a student-driven review system, enabling learners to vote to remove teachers. Faculty members argue this creates a precarious power dynamic, making it risky to challenge students. They also assert that center managers possess the authority to dismiss staff arbitrarily, without adequate oversight.
The financial pressures associated with PW”s low-cost business model seem to exacerbate these issues. To maintain profitability, the company has allegedly been reducing costs by hiring less experienced, lower-paid instructors. This strategy has contributed to a reported 58% increase in student dropouts and refunds totaling INR 26 Crore in FY25. As PW approaches its public market debut, it must find a way to balance growth with the retention of its most valuable asset—its teachers.
In other news, Ankit Maheshwari, co-founder of Dataisgood, was arrested in September and faces charges including fraud, conspiracy, and data theft. Maheshwari has been embroiled in controversy following his exit from Dataisgood, which was acquired by Skill Arbitrage in 2023. The investigation revealed a series of irregularities, including employees impersonating alumni from prestigious tech companies to attract students, as well as fake testimonials and misleading course representations.
The allegations against Maheshwari form part of a troubling pattern. Following his departure from Dataisgood, he launched a competing venture, 1to10X, allegedly appropriating vital data from his previous firm. This mirrors a contentious exit from his earlier startup, Betaout, where an acquisition reportedly incurred a 90% loss for angel investors like Vijay Shekhar Sharma of Paytm, while the founders received substantial payouts. Maheshwari”s ventures now face scrutiny—are these mere entrepreneurial missteps, or indicative of a more systemic deception?
Meanwhile, Lahori, a beverage company founded by three cousins from Punjab in 2017, is making waves by offering ethnic drinks that rival global brands. Initially, distributors were hesitant, opting to take stock on credit. Instead of pressing for large orders, the founders encouraged retailers to take small initial bets of just INR 200 each. This strategy proved successful, leading to widespread availability and repeat orders.
Using profits to fuel growth, Lahori expanded production through a combination of owned facilities and a co-bottling model. It secured strategic funding, first from Verlinvest and later a significant investment of INR 200 Crore from Motilal Oswal Wealth, which helped optimize operations and build a robust management team. From INR 83 Crore in revenue in 2020, Lahori”s earnings soared to INR 530 Crore in FY25, with a goal of reaching INR 800 Crore in FY26. The company is also set to expand into South India and make its debut in the UAE.
After nearly a decade of challenges, Rentomojo, a furniture rental startup, is finally in the limelight with its recent profitability and an anticipated IPO. The company”s journey has been tumultuous, from raising capital for an asset-heavy business to persuading customers to rent instead of buy. The pandemic forced Rentomojo to streamline its operations and focus on core offerings, leading to a path towards profitability.
Rentomojo has expanded its offline presence to 65 outlets, allowing customers to physically experience its products. This retail growth, combined with its online platform, now represents nearly 20% of its operating revenue. The company posted an unaudited net profit of INR 40 Crore in FY25, alongside revenues of INR 270 Crore. Looking ahead, Rentomojo plans to enter new cities, introduce additional categories, and enhance customer spending, as it aims to demonstrate the viability of India”s rental market.
Similarly, Seekho, an edutainment startup founded by three alumni of IIT Kanpur, faced near-collapse in mid-2022 with less than a month of cash remaining. In a bold pivot, the founders introduced a low-cost annual subscription, which turned out to be a game-changer. This shift allowed them to reinvest in high-quality content focused on finance, life hacks, and business growth, which attracted skilled creators and retained users.
By March 2025, Seekho”s paid user base had surged to 2 million, propelling monthly revenues to INR 50 Crore. The company, once on the brink of failure, is now projected to exceed INR 600 Crore in revenue for FY26. With plans to explore vernacular content, AI-driven learning, and new categories like agriculture, Seekho is poised for continued growth.
