IPO Structure and Fund Utilisation
The IPO consists of a fresh issue of ₹3,100 crore and an offer for sale worth ₹720 crore by co-founders Alakh Pandey and Prateek Maheshwari. According to the filing, the proceeds will be channelled into multiple growth areas:
- Expansion of offline and hybrid learning centers across India.
- Investment in advanced technology platforms and AI-driven tools such as AI Guru and Alakh AI.
- Meeting working capital requirements.
- Repayment or prepayment of borrowings.
- General corporate purposes.
PhysicsWallah has shown a rapid rise in revenue but continues to face profitability challenges. Its revenue from operations jumped from ₹743 crore in FY23 to ₹1,940 crore in FY24, and further to ₹2,886 crore in FY25. Despite this growth, the company posted net losses of ₹84 crore (FY23), ₹113 crore (FY24), and ₹243 crore (FY25).
On the balance sheet front, the company turned positive in FY25 with a net worth of ₹1,945 crore, a significant turnaround from a negative net worth of ₹861 crore in FY24. Borrowings remain minimal at just ₹3 crore as of March 31, 2025.
About PhysicsWallah
Founded in 2020 by Alakh Pandey and Prateek Maheshwari, PhysicsWallah started as a YouTube channel in 2016 before growing into a full-fledged edtech company. It now offers affordable courses for K-12, JEE, NEET, UPSC, and other competitive exams through a mix of online, offline, and hybrid models.
The platform is widely recognized for democratizing education by providing low-cost test preparation materials and interactive classes. The company also offers professional and upskilling courses to bridge industry skill gaps.
Key Managers of the IPO
The IPO will be managed by Kotak Mahindra Capital Company, JP Morgan India, Goldman Sachs (India) Securities, and Axis Capital. MUFG Intime India has been appointed as the registrar of the issue.
Significance of the IPO
The PhysicsWallah IPO reflects the growing importance of the edtech sector in India, especially after the pandemic accelerated digital learning adoption. Analysts suggest that the funds raised will help the company strengthen its hybrid presence and invest in artificial intelligence solutions for personalized learning experiences.