The offering will comprise a fresh issue of ₹3,100 crore and an offer for sale (OFS) of ₹720 crore by its promoters. The OFS will see founders Alakh Pandey and Prateek Maheshwari (mentioned as Prateek Boob in official filings) sell up to ₹360 crore worth of shares each.
With the fresh capital raise, Physics Wallah plans to use IPO proceeds to open new offline centres ( ₹460 crore), cover lease costs ( ₹548 crore), invest in subsidiaries such as Xylem and Utkarsh ( ₹470 crore), build cloud and server infra ( ₹200 crore), and spend ₹710 crore on marketing, according to the updated filings.
However, it flagged risks such as high student concentration in test-prep categories, regulatory scrutiny in edtech, and intense competition in the segment.
Founded in 2016 as a YouTube channel, PhysicsWallah has grown into a full-stack education company offering online and offline courses across K-12, NEET, JEE, UPSC, and state-level competitive exams, apart from a presence in other segments like study abroad, degree programmes, and upskilling courses.
It operates a mix of online courses, hybrid centres, and test-prep institutes under brands including Knowledge Planet, Xylem Learning and Utkarsh Classes, targeting over 2 million students annually across Tier-II and Tier-III cities.
The company has raised $312 million funding since its inception. In 2022, PhysicsWallah had raised $100 million from WestBridge and GSV Ventures, marking its entry into the unicorn club.
It last raised $210 million in series B funding from Hornbill Capital and existing investors in September last year.
The IPO comes as edtech firms turn to the public markets amid slower private funding flows. If successful, PhysicsWallah would be the first new-age edtech company to list. Mint had earlier in February reported edtech firms Classplus, Jaro Education, Lead, and Eruditus are in various stages of preparation to list on the bourses.
The company has hired Kotak, JP Morgan, Goldman Sachs and Axis Capital as book-running lead managers.
In FY25, the company reported a total income of ₹2,886 crore, up from ₹1,940 crore in FY24 and ₹744 crore in FY23. Net loss reduced to ₹240 crore in FY25, compared to ₹1127 crore in FY24 and ₹85 crore in FY23, the UDRHP showed.
PhysicsWallah is largely owned by its two cofounders, Pandey and Maheshwari, who hold about 40.35% each in the company, accounting for over a billion shares apiece.
Among institutional investors, the biggest is WestBridge, with about 6.4% of the company, followed by Hornbill Capital Partners (4.4%), GSV Ventures (2.9%), and Lightspeed (1.8%). Smaller investors include Setu AIF Trust (1.4%), Konark Trust, RNM Enterprises, Janki Corp, Paras Dave Suri, and Manan Consultancy, each holding less than 1%.
