PhysicsWallah’s ₹3,820 crore IPO includes ₹3,100 crore fresh issue and ₹720 crore offer for sale
Cofounders to sell ₹360 crore worth of shares each; hold 40.35% stake pre-IPO
Key investors include WestBridge, Hornbill, GSV Ventures, and Lightspeed
Edtech unicorn PhysicsWallah has filed its updated IPO papers with the Securities and Exchange Board of India (Sebi) to raise ₹3,820 crore after going public on Indian bourses. The IPO will be a mix of fresh issue and an offer for sale components.
Of ₹3,820 crore IPO, approximately ₹3,100 crore will include fresh issue and ₹720 crore will be an offer for sale by existing shareholders. The company’s cofounders and promoters – Alakh Pandey and Prateek Boob – will offload shares worth Rs 360 crore each.
The two cofounders hold 40.35% stake each in PhysicsWallah ahead of the IPO. Other key investors in the start-up are WestBridge Capital, Hornbill Capital, GSV Ventures, and Lightspeed.
Founded in 2020, PhysicsWallah is known for providing accessible and comprehensive learning experiences to students. It has a presence spanning online, offline, and hybrid modes, reaching 98 per cent of Indian pin codes.
How IPO Fund Will be Used?
The edtech plans to use ₹460.6 crore from the proceeds of the fresh issue to set up new offline and hybrid centres. Nearly ₹548.3 crore will be leveraged to cover lease payments of its already identified centres. The start-up will also invest ₹47.2 crore in its subsidiary Xylem Learning.
Additionally, ₹33.7 crore will be allocated for lease payments at Utkarsh Classes & Edutech’s existing offline centres, while ₹26.5 crore will be used to acquire additional equity in the subsidiary.
On the technology side, the edtech unicorn plans to invest ₹200.1 crore in enhancing its server and cloud infrastructure to support seamless delivery of online and hybrid learning solutions. The largest portion of the IPO proceeds, ₹710 crore, is earmarked for marketing efforts aimed at boosting brand visibility and reaching more students across India.
The remaining amount will be kept for future acquisitions and general corporate purposes, which will give the edtech platform flexibility to pursue strategic opportunities as they arise.
PhysicsWallah FY25 Financials
The edtech platform has recorded a 53% jump in its revenue for the financial year 2025. It has recorded a revenue of ₹3,000 crore for FY25, up from ₹ 1,950 crore in FY24, according to a report published by Business Standard.
The report also stated that PhysicsWallah managed to reduce its losses by 80%. While the exact number for FY25 was not available, the losses for the previous fiscal year were ₹1,131 crore. The company reported an EBITDA of approximately ₹200 crore.
Its revenue growth has been driven by initiatives like expanding offline operations and a rise in paid batch enrolments. The edtech platform now serves around five million paid users, up from 3.6 million in FY24.
PhysicsWallah claims to produce 9,500 hours of educational content every week with a student base across 18,808 pin codes, accounting for almost 98% of pin codes in India.
