Industry Odisha Bureau, Oct 12: Wealthy coaching teachers are leaving firms like Physics Wallah and Unacademy to launch businesses. Fame and savings ease the start, but scaling is hard. Investors, too, have turned selective.
A new kind of founder is emerging from India’s coaching classrooms. Several teachers whose packages crossed ₹1 crore are now launching their own ventures. Rakesh Goyal, Chaandeep K Singhal and Mohit Bhargava are among them.
Redseer Strategy Consultants puts India’s test-preparation market at over $14.8 billion in FY26. Classroom fame, however, does not ensure a lasting business.
During the Covid-era edtech boom, platforms fought hard for teachers with loyal followings. Goyal’s fixed pay and bonus at Physics Wallah totalled about ₹65 lakh a year. His equity component was valued above ₹1 crore.
Bhargava’s three-year Unacademy contract was reportedly worth up to ₹7 crore. Physics Wallah’s ₹3,480 crore IPO in 2025 let eligible educators monetise holdings. Still, equity on paper is not the same as cash in hand.
Goyal launched Noida-based OziTutors in February 2026 with ex-Walmart engineer Tejendra Singh. The asset-light platform links students with independent tutors, who set their own fees. It has signed up over 1,800 tutors and takes about 15% commission.
In Kota, chemistry teacher Singhal founded Arke Scholars after about 25 years in classrooms. It blends K-12 learning with exam coaching and AI-led assessments.
Singhal said Madhya Pradesh provided 1,800 students for a pilot. He has invested about ₹1.25 crore himself and is seeking outside capital.
Bhargava left Unacademy in November 2025 and launched Kota-based AcadXL. It offers offline JEE Main and Advanced coaching, plus online courses.
Prashant Jain, an IIT Bombay graduate and Unacademy educator, has chosen farming instead. His Haroti Farms in Sultanpur, Kota, plans organic farming, dairy and online A2 milk sales.
Jain and his partner have put in about $1 million of their own money. He aims eventually for a herd of 2,000–3,000 cows. Jain credits his teaching career with sharpening his grasp of unit economics.
The coaching industry itself has turned cost-conscious. Senior faculty once paid ₹50 lakh or more reportedly now receive ₹25–30 lakh offers. Some star teachers who earned up to ₹2.3 crore now see ₹1.5–1.8 crore. These are reported examples, not industry averages.
Scaling poses the bigger test. A star teacher can serve many students without costs rising proportionately. Growth, however, demands more faculty, infrastructure, marketing and management.
Allen chief executive Nitin Kukreja said good teaching alone does not build an education company. PwC India’s Amit Nawka said the challenge is outgrowing a founder’s personal brand. He cited Alakh Pandey’s Physics Wallah as one success.
Lightspeed partner Harsha Kumar said few new test-prep startups reach the venture-capital stage. She noted demand clusters around JEE, NEET and government exams, with seasonal software use.
Kukreja said founders may need two to three years before winning institutional backing. Nawka believes AI-first models could cut content costs and enable personalised learning.
Kukreja said Allen remains open to acquisitions but would move strategically. Physics Wallah co-founder Prateek Maheshwari sees emerging coaching ventures as possible targets. No deal has been announced.
Their test now is sound unit economics and proven student outcomes.
