The announcement comes weeks after PhysicsWallah disclosed an investment of about ₹120 crore in FinZ Finance through an equity infusion.
According to the company, the revised approach is intended to materially reduce balance sheet and credit-related risks. Going forward, PhysicsWallah will act as a technology platform connecting students with a curated network of lending partners, while the NBFCs will undertake the underwriting and lending functions.
Co-founder Prateek Maheshwari said feedback from stakeholders indicated that the company’s strengths lie in building education communities and operating its core online learning business, while lending activities are better handled by regulated financial institutions with established underwriting capabilities.He added that the company revisited its earlier decision as part of its focus on prudent capital allocation and shareholder value creation.
PhysicsWallah said it will continue to support affordability and accessibility for students through financing partnerships, while decisions regarding the future strategic direction of FinZ Finance will be taken later, subject to board and regulatory approvals.
The announcement comes at a time when the company’s stock has been under continued pressure. PhysicsWallah debuted on the NSE at ₹145 per share on November 18, 2025. Even after Thursday’s gain, the stock was trading around ₹105, nearly 30% below its listing price.
The stock has declined about 9% over the last month, over 27% in the past six months and nearly 35% over the last year.
