#PhysicsWallahIPO #Edtech #IndianStartups #StockMarketIndia #SEBI #IPO2025 #UPI #DigitalEducation #HybridLearning #AlakhPandey #NewAgeCompanies
New Delhi – In a landmark move for India’s edtech sector, PhysicsWallah (PW), the country’s only profitable unicorn in the space until recently, has filed its Updated Draft Red Herring Prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI). The filing marks its intent to raise up to ₹3,820 crore through an initial public offering (IPO), making it the first Indian edtech player to take the public market route.
IPO Structure
According to the filing, the offering comprises:
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A fresh issue of shares worth ₹3,100 crore, and
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An offer-for-sale (OFS) of ₹720 crore by promoters and early investors.
Promoters Alakh Pandey (Founder & CEO) and Prateek Boob (Co-Founder) will be offloading part of their holdings through the OFS.
If successful, the IPO could potentially catapult PhysicsWallah’s valuation close to $5 billion, nearly double the $2.8 billion valuation it achieved in September 2024 when it raised $210 million in funding.
Utilisation of Funds
PhysicsWallah has clearly earmarked the proceeds from the fresh issue for strategic expansion and long-term growth. The UDRHP outlines the following deployment plan:
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₹710 crore for marketing initiatives, to further strengthen its brand presence across India and Tier-II and Tier-III cities.
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₹548 crore for lease payments of existing identified offline and hybrid learning centers.
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₹460 crore for capital expenditure, including fit-outs for upcoming hybrid and offline centers.
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₹471 crore for investment in subsidiary Xylem Learning Pvt. Ltd., which focuses on expanding content and technological innovation.
This allocation underscores PW’s strategy of expanding beyond its digital-first model into a blended hybrid learning ecosystem, combining strong online offerings with offline classrooms.
Shareholding Pattern
Promoters currently hold 82.3% stake in the company, split equally between Alakh Pandey and Prateek Boob, who each own 40.35%. Public shareholding stands at 17.7%.
Among institutional backers:
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WestBridge AIF I, managed by WestBridge Capital, holds 6.41%,
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Hornbill Capital Partner owns 4.42%,
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GSV Ventures Fund III has 2.85%,
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Lightspeed Opportunity Fund holds 1.79%, and
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Setu AIF Trust owns 1.39%.
This diversified investor base highlights strong venture capital confidence in the company’s growth trajectory.
Financial Performance
PhysicsWallah has grown rapidly in recent years, though profitability has come under pressure amid expansion.
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In FY25, the platform reported 44.6 lakh paid users, reflecting a CAGR of 59% between FY23 and FY25.
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For FY24, PhysicsWallah posted revenues of ₹1,940 crore, but also reported a loss of around ₹1,130 crore, owing to aggressive expansion, marketing spends, and hybrid center set-ups.
Despite these losses, the company’s IPO ambitions underscore its long-term vision of becoming a mainstream education and skilling powerhouse.
Sectoral Significance
If the IPO goes through, PhysicsWallah will become the first Indian edtech unicorn to be listed on the domestic stock exchanges. This is significant, given the turbulence the edtech sector has faced over the past three years, with several players struggling with funding winter, regulatory scrutiny, and sustainability challenges.
PhysicsWallah, unlike many peers, built its reputation through affordable courses, localized teaching, and hybrid expansion, helping it penetrate smaller cities and towns where demand for competitive exam preparation is booming.
Competition and Market Context
The company operates in a competitive landscape dominated by players like BYJU’S, Unacademy, and Vedantu. However, while many of these peers have faced financial stress, PhysicsWallah has positioned itself as a value-driven, sustainable brand.
The IPO comes at a time when several new-age companies — including Meesho, Groww, Lenskart, and Pine Labs — are also preparing to list, reflecting a broader wave of private tech-backed enterprises entering India’s public capital markets.
Lead Managers and Advisory
To steer this high-profile IPO, PhysicsWallah has roped in top-tier investment banks as book-running lead managers. These include:
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Axis Capital,
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Mahindra Capital,
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Goldman Sachs, and
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JP Morgan.
The inclusion of both domestic and global banking giants indicates the scale and ambition of the offering.
Founder’s Vision
Founded in 2016 by Alakh Pandey, a popular YouTube educator who later teamed up with Prateek Boob, PhysicsWallah started as a low-cost online learning platform for competitive exams. It quickly scaled to become a full-fledged edtech ecosystem, expanding into NEET, JEE, UPSC, GATE, and even upskilling courses.
The founders’ story — from small beginnings to leading India’s first edtech IPO — is likely to resonate strongly with retail investors, many of whom are familiar with Pandey’s teaching journey.
Conclusion
PhysicsWallah’s IPO filing signals a major milestone for India’s startup and edtech ecosystem. By aiming to raise ₹3,820 crore, the company is not only seeking to fund its hybrid expansion and marketing push but also to cement its position as a long-term player in the global education industry.
As India’s public markets gear up to welcome a new-age education brand, all eyes will be on SEBI’s final approval and investor appetite for what could become one of the most closely watched IPOs of 2025.
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