PhysicsWallah Ltd. has submitted its updated draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for a proposed ₹3,820 crore initial public offering (IPO).
The IPO will include a fresh issue of ₹3,100 crore and an offer for sale (OFS) worth ₹720 crore. As part of the OFS, co-founders Alakh Pandey and Prateek Maheshwari (listed as Prateek Boob in filings) are set to sell up to ₹360 crore shares each.
Utilisation of Funds
The edtech firm intends to allocate the IPO proceeds towards:
- Opening new offline learning centres – ₹460 crore
- Lease-related expenses – ₹548 crore
- Investments in subsidiaries like Xylem and Utkarsh Classes – ₹470 crore
- Building cloud and server infrastructure – ₹200 crore
- Marketing and brand promotion – ₹710 crore
Growth & Risks
Founded in 2016 as a YouTube channel, PhysicsWallah has rapidly evolved into a full-fledged online and offline education platform, catering to over 2 million students annually across Tier-II and Tier-III cities. Its offerings cover K-12, JEE, NEET, UPSC, study abroad, degree programs, and upskilling courses, under brands including Knowledge Planet, Utkarsh, and Xylem Learning.
However, the company highlighted risks like heavy reliance on test-prep categories, regulatory scrutiny in edtech, and growing competition.
Financial Performance
- FY23: Revenue ₹744 crore, net loss ₹85 crore
- FY24: Revenue ₹1,940 crore, net loss ₹1,127 crore
- FY25: Revenue ₹2,886 crore, net loss reduced to ₹240 crore
Shareholding & Investors
The company is majorly promoter-owned, with Pandey and Maheshwari holding ~40.35% each. Among institutional backers:
- WestBridge Capital – 6.4%
- Hornbill Capital – 4.4%
- GSV Ventures – 2.9%
- Lightspeed – 1.8%
Smaller stakes are held by Setu AIF Trust, Konark Trust, RNM Enterprises, and others.
Since inception, PhysicsWallah has raised $312 million, including $100 million from WestBridge & GSV Ventures in 2022, when it entered the unicorn club. Its most recent Series B round (Sept 2024) brought in $210 million from Hornbill and existing investors.
Also Read: AICTE and OpenAI join forces to transform AI learning in India
IPO Outlook
With private funding slowing, more edtech players are eyeing public markets. If listed successfully, PhysicsWallah would become India’s first new-age edtech startup to debut on the stock exchanges. Book-running lead managers for the IPO include Kotak Mahindra Capital, JP Morgan, Goldman Sachs, and Axis Capital.
