Edtech unicorn PhysicsWallah files updated DRHP, plans to raise ₹3,820 crore via IPO

Top edtech unicorn PhysicsWallah has filed its Updated Draft Red Herring Prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI), marking its intent to raise up to ₹3,820 crore through an initial public offering (IPO).The proposed offering includes a fresh issue of equity shares worth ₹3,100 crore, and an offer for sale (OFS) by existing shareholders amounting to another ₹720 crore.

SEBI had approved the pre-filing of draft papers in July this year. This confidential pre-filing route allows companies to get regulatory review from the SEBI before making them public.

Proceeds from the fresh issue will be utilised for various purposes. The firm will use ₹710 crore for marketing initiatives, ₹548 crore for lease payments of existing identified offline and hybrid centers operated by the company, ₹460 crore for capital expenditure for fit-outs of new offline and hybrid centers, and ₹471 crore for investment in subsidiary Xylem Learning Pvt.PhysicsWallah is backed by the likes of Westbridge Capital, GSV Ventures, Lightspeed Venture Partners and Hornbill Capital. If the listing plans fructify, the company could potentially become India’s first edtech player to debut on the domestic bourses.
Other new-age companies preparing to list this year include Meesho, Groww, Lenskart and Pine Labs.Promoters currently hold 82.3% stake in Physicswallah with Alakh and Prateek having 40.35% shareholding each, while public shareholding in the company is 17.7%.

WestBridge AIF I, the venture capital fund managed by Mauritius-based investment firm WestBridge Capital, is the largest shareholder in the company after promoters, with 6.41% stake, followed by Hornbill Capital Partner with 4.42% stake.

US-based venture capital firm GSV Ventures’ Fund III holds 2.85% shares, followed by Lightspeed Opportunity Fund at 1.79% stake, and Setu AIF Trust at 1.39%.

Physicswallah offers test preparation courses for competitive examinations, and other courses such as for upskilling. The platform had 44.6 lakh paid users in the financial year 2025, which grew at a CAGR of 59% between FY23 and FY25, according to the draft papers.

PhysicsWallah has enlisted prominent investment banks, including Axis Capital, Mahindra Capital, Goldman Sachs, and JP Morgan, to steer this significant financial milestone as its book-running lead managers.

In September 2024, the company had secured $210 million in funding at a valuation of $2.8 billion. In less than a year, PhysicsWallah has set its sights on nearly doubling that valuation to $5 billion. This move comes despite the company reporting a revenue of ₹1,940 crore in FY24, coupled with a loss of approximately ₹1,130 crore.