How college dropout Alakh Pandey turned free YouTube lessons into a $4B business and beca…

Alakh Pandey, who grew up in a slum in northern India, dropped out of college to pursue teaching before building an estimated $1.5 billion fortune through his online education company PhysicsWallah.

The 34-year-old entrepreneur co-founded PhysicsWallah, an Indian education technology company that grew out of his free YouTube physics lessons and had a stock market valuation of approximately $4 billion in August.

Pandey had an estimated net worth of $1.5 billion as of Oct. 19, making him India's second-youngest self-made billionaire, behind Aravind Srinivas, the 31-year-old co-founder and CEO of U.S.-based AI search company Perplexity, whose fortune was estimated at $2.1 billion, according to Forbes.

Headquartered in Noida, northern India, PhysicsWallah offers online and in-person courses for students preparing for competitive engineering and medical entrance examinations, as well as training in artificial intelligence, data analytics, software development and banking. Pandey's YouTube channel, "Physics Wallah - Alakh Pandey," now has more than 14 million subscribers.

"It is not that I enjoy teaching because I am successful now," Pandey told Indian startup news platform YourStory in 2022. "I enjoyed my work even while I was shooting videos out of my single-room rented apartment in 2015."

Early years struggles

Pandey grew up in Prayagraj, formerly known as Allahabad, in the northern Indian state of Uttar Pradesh, where his father worked as a contractor and his mother was a teacher. His father's failed business ventures plunged the family into financial difficulties, forcing his parents to sell their home in stages to cover living expenses.

They sold part of the house when Pandey was in third grade and the remainder by the time he reached sixth grade, moving into rented accommodation in a slum. His mother borrowed money from relatives to support his education, while Pandey began tutoring fourth- and fifth-grade students when he was in eighth grade to help his family make ends meet.

He developed an unconventional teaching style, using memes, jokes and even tattoos to engage students, earning a devoted following that would later help fuel his success online. He enrolled in an engineering program but dropped out during his third year to pursue teaching.

Returning to his hometown, he spent about four years working at a coaching institute, earning a modest salary while refining his teaching methods. His ability to explain difficult physics concepts in simple language resonated with students preparing for India's highly competitive university entrance examinations.

From free YouTube lessons to a billion-dollar business

Pandey launched his Physics Wallah YouTube channel in the mid-2010s, initially recording lessons with a smartphone, tripod, whiteboard and a few textbooks. His free videos reached students in smaller cities and lower-income families who could not afford expensive private coaching. At the time, he had no plans to start a business, spending six to 12 hours a day recording and uploading lessons.

By 2019, his YouTube channel had attracted more than two million subscribers. In 2020, he partnered with entrepreneur Prateek Boob, a mechanical engineering graduate who ran PenPencil, an educational technology platform for teachers, to establish PhysicsWallah as an online education company.

Boob contributed software development experience, while Pandey brought his teaching expertise and established student following. Demand initially overwhelmed the company's technology. During an early live class, more than 50,000 students attempted to join, causing the app to crash, Pandey said.

PhysicsWallah expanded its technical capacity and introduced recorded lessons, live classes, assignments and examination preparation materials. Its first paid course, Lakshya, attracted approximately 63,000 students.

Affordability became central to its business model, with courses offered at around one-tenth the price charged by some competing education providers. The strategy helped PhysicsWallah attract students across India and compete with established coaching companies.

In June 2022, it raised $100 million from investors WestBridge Capital and GSV Ventures at a valuation of $1.1 billion, becoming one of India's billion-dollar startups. The company subsequently expanded into physical learning centers and additional programs, including professional training and preparation for government examinations.

PhysicsWallah went public on Nov. 18, 2025, listing on India's National Stock Exchange and Bombay Stock Exchange. Its shares opened at a 33% premium to the initial public offering price, increasing the value of Pandey's ownership stake. The listing helped make Pandey a billionaire at 33, while Boob, then 37 and a director on the company's board, also joined the ranks of billionaires.

PhysicsWallah continued expanding after its stock market debut. Since its founding, it has taught more than 40 million students across its platforms, including over five million paying students in the 2026 financial year, according to Business Standard. Its courses are available in Hindi, English, a mix of the two known as Hinglish, and nine regional languages, helping it reach students across India.

In August, he offered to support an Indian government initiative providing free online coaching without seeking financial returns. "I offer my unconditional support to the government for this. I don't want any profits in return. Quality education should be free for every child in India," he wrote.

In September, he announced plans to spend two years in southern India overseeing the company's expansion across five states.

As artificial intelligence increasingly reshapes education, the company is also exploring how the technology can improve learning while retaining teachers' central role. "We are a for-the-student company," Boob says. "All our decisions are directed towards students." He said much of the company's capital was being reinvested into its operations and the broader education sector, including early-stage businesses.

Pandey, meanwhile, remains closely involved in teaching and sees AI as a tool to help educators better understand students' needs. "AI can assess how a student spends time on a concept, where they hesitate and adapt instantly," Pandey told Forbes India in May.

"Teachers are an integral part of a student’s life. AI will not replace teachers. It will make them more effective and accessible."