Edtech unicorn Physicswallah, backed by WestBridge Capital, is all set to hit the primary market with its ₹3,480-crore initial public offering (PhysicsWallah IPO) on November 11, marking one of the biggest public issues in India’s education space.
The IPO will open for subscription between November 11 and 13, with the anchor book opening on November 10. The listing is scheduled for November 18 on both BSE and NSE, according to the company’s Red Herring Prospectus (RHP).
Physicswallah IPO: Offer structure and shareholding
The offer comprises a fresh issue of shares worth ₹3,100 crore and an offer for sale (OFS) of ₹380 crore by promoters Alakh Pandey and Prateek Boob.
Post-issue, the founders will continue to hold a majority stake. Currently, they own 80.62% of the company. Among institutional investors, WestBridge AIF holds 6.4%, Hornbill Capital Partner 4.4%, GSV Ventures 2.85%, and Lightspeed Opportunity Fund 1.79%.
The company has appointed Kotak Mahindra Capital, JP Morgan India, Goldman Sachs (India), and Axis Capital as lead managers to the issue.
Where the money will go?
Physicswallah plans to use the proceeds largely to fund its offline and hybrid expansion, along with marketing and technology upgrades.
According to the RHP, the company has earmarked:
- ₹460.5 crore for setting up new offline and hybrid centres
- ₹548.3 crore for lease payments of existing centres
- ₹47.2 crore investment in subsidiary Xylem Learning
- ₹28 crore towards Utkarsh Classes & Edutech’s leases and ₹26.5 crore for acquiring additional stake in the subsidiary
- ₹200.1 crore for server and cloud infrastructure
- ₹710 crore for marketing
The rest will go towards acquisitions and general corporate purposes.
Business model and footprint
Founded in 2020, Physicswallah began as an online YouTube channel by Alakh Pandey, a physics teacher known for his low-cost coaching content. Over time, it expanded into a full-fledged edtech firm offering test prep for JEE, NEET, and UPSC exams.
The company now operates across both digital and physical models, with multiple learning centres under the PW Vidyapeeth and PW Pathshala brands. It also runs upskilling programmes and has made strategic investments in regional education players like Xylem Learning (Kerala) and Utkarsh Classes (Rajasthan).
Physicswallah claims to be among India’s top five education companies by revenue, competing with names like BYJU’S, Vedantu, and Allen Career Institute.
Financials: steady growth, narrowing annual loss
The edtech firm reported ₹2,886.6 crore in revenue for FY25, up nearly 49% from ₹1,940.7 crore in FY24. Its net loss narrowed sharply to ₹225.8 crore from ₹1,263.9 crore a year earlier.
For the June 2025 quarter, revenue stood at ₹847 crore, marking 33% growth year-on-year. However, quarterly losses widened to ₹152 crore from ₹102 crore in the same quarter of FY24, reflecting higher spends on expansion and marketing.
The move to allocate over ₹1,000 crore for offline centres indicates a strategic pivot. Physicswallah’s founders believe the future of Indian test prep lies in hybrid learning, a blend of physical classrooms and digital delivery.
After years of consolidation and funding crunches in India’s edtech sector, Physicswallah’s IPO is being closely watched as a litmus test for investor confidence in the education space.
Industry analysts say the company’s focus on affordability and physical expansion could help it stand apart from loss-heavy peers. Yet, the challenge will be balancing growth with profitability as it transitions from a founder-led startup to a listed enterprise.
