PhysicsWallah: The rise of an edtech giant
PhysicsWallah, the edtech unicorn founded by Alakh Pandey in 2016, has become one of India’s most recognized names in online education. Known for its accessible and affordable approach to competitive exam prep, it’s now preparing to enter the stock market with an IPO worth approximately ₹4,600 crore in FY2025.
PhysicsWallah started as a YouTube channel, but today it operates a full-stack education platform offering courses in NEET, JEE, UPSC, and more. This IPO is expected to be a major milestone for India’s edtech sector, opening up the possibility for other startups to follow suit.
What does the PhysicsWallah IPO entail?
PhysicsWallah plans to raise ₹4,600 crore through its IPO, with a fresh issue of ₹3,100 crore and an offer for sale (OFS) of ₹720 crore. The company has already received SEBI’s approval for the public offering, making it the latest edtech player to seek a listing.
The Draft Red Herring Prospectus (DRHP) highlights some key risks that the company faces, including student safety incidents and faculty-related conflicts, which could potentially impact its reputation and business. In one infamous episode, a student allegedly threw a slipper at a faculty member during a video call in 2023. While the company has stated it’s taking action to prevent such incidents, it has also acknowledged that these events could affect its business operations and public perception.
Also read: Physics Wallah Prepares to Launch $500 Million IPO – Shortlists 4 I Banks
Here’s a look at the key IPO details:
| Details | Value |
| IPO Size | ₹4,600 crore |
| Fresh Issue | ₹3,100 crore |
| Offer for Sale | ₹720 crore |
| Promoter Holding Pre-Issue | 40.35% (each co-founder) |
| Lead Managers | Kotak, JP Morgan, Goldman Sachs, Axis Capital |
The financial performance
PhysicsWallah has grown rapidly, with revenue increasing from ₹744 crore in FY23 to ₹2,886 crore in FY25. However, despite the impressive growth, the company still posted a net loss of ₹240 crore in FY25, an improvement from the ₹1,127 crore loss in FY24.
Here’s a breakdown of the company’s recent financials:
| Year | Revenue (₹ Cr) | Net Loss (₹ Cr) |
| FY2025 | ₹2,886 | ₹240 |
| FY2024 | ₹1,940 | ₹1,127 |
| FY2023 | ₹744 | ₹85 |
The company continues to expand both its online and offline presence, currently operating 198 offline centres in cities like Delhi NCR, Patna, Kota, and Kolkata. With over 4.46 million paid users and a growing market in Tier-II and Tier-III cities, PhysicsWallah is positioned for more growth.
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Risks and challenges
PhysicsWallah’s IPO comes with its fair share of risks, as highlighted in the DRHP. Some of the key risks include:
- Student safety concerns: With incidents like the slipper episode and staff misconduct, the company has faced negative publicity. The company states it’s implementing measures to improve safety, but no guarantees have been made.
- Faculty retention: The company also faces the risk of senior faculty members leaving for competitors or starting their own centres, which could impact its operations.
- Competition: The rapidly evolving edtech landscape presents constant challenges, with new players emerging and older companies expanding their offerings.
Despite these concerns, PhysicsWallah’s massive user base and expansion plans may offset some of these risks.
The IPO’s potential impact
PhysicsWallah’s IPO will be one of the largest in India’s edtech space, and it has already attracted significant attention from investors. By raising ₹4,600 crore, the company plans to use the funds for expanding its offline and hybrid centres and investing in its subsidiaries. The IPO will also help PhysicsWallah meet regulatory and governance requirements, as the company prepares for greater public scrutiny.
Conclusion
PhysicsWallah’s ₹4,600 crore IPO represents a significant step for the company and the Indian edtech sector. With impressive growth numbers, a large user base, and strong backing from investment banks, the company seems well-positioned to make a successful entry into the stock market.
However, potential risks such as student safety issues and faculty retention will be key concerns for investors. The company’s ability to maintain its growth trajectory while managing these challenges will be crucial for its future.
In conclusion, if you’re interested in the edtech sector, PhysicsWallah’s IPO could be a compelling opportunity, but make sure to weigh the risks and rewards carefully.
