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Startups·1 min read

PhysicsWallah Uses AI to Trim Workforce, Sets $20 Mn for M&A

PhysicsWallah says AI-driven efficiencies are reducing its staffing needs, while its offline Vidyapeeth business still faces profit pressure and $20 million is set aside for deals.

Edtech company PhysicsWallah is using artificial intelligence to improve operational efficiency and reduce its workforce requirements, even as it prepares to grow through acquisitions. The Noida-based company also said profitability in its offline business remains a challenge.

Headcount falls sequentially

During its Q2 FY27 earnings call, management confirmed that total employee count, which stood at around 19,100, and faculty strength of roughly 7,100 both declined from the previous quarter. The company attributed the reduction partly to efficiencies gained through AI.

Offline business under pressure

Despite the continued expansion of its Vidyapeeth centres, the offline segment is still facing profitability pressure. Expanding a physical network brings costs that weigh on margins, and management acknowledged the challenge on the call.

Money earmarked for M&A

PhysicsWallah is also looking at the inorganic route and has earmarked $20 million for mergers and acquisitions. Further details on possible targets were not available.

The update shows how Indian edtech firms are balancing automation to hold down costs against investment in physical learning centres and deal-making to widen their reach.

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