New Delhi, September 7, 2025 – Edtech unicorn PhysicsWallah has filed its updated Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), targeting to raise ₹3,820 crore through an initial public offering (IPO). The public issue will comprise a fresh issue of shares worth ₹3,100 crore and an offer for sale (OFS) of up to ₹720 crore by co-founders Alakh Pandey and Prateek Boob.
The development comes as the Indian IPO market witnesses heightened activity, with several tech startups preparing for listings in the current fiscal.
PhysicsWallah IPO
Founded in 2020 by Alakh Pandey, popularly known as “PhysicsWallah” among students, and Prateek Boob, the company has rapidly grown into one of India’s largest edtech platforms.
Initially launched as a YouTube channel offering affordable classes for JEE and NEET aspirants, PhysicsWallah has since expanded into offline centres, hybrid classrooms, and subscription-based courses across 13 categories, including civil services, GATE, upskilling, and board exam preparation.
With WestBridge Capital, Lightspeed, GSV Ventures, and Hornbill Capital among its key investors, the unicorn has also pursued an acquisition-driven growth strategy, acquiring startups such as Xylem Learning, iNeuron, and PrepOnline to strengthen its presence in competitive exam segments.
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PhysicsWallah’s Latest DRHP Filing: Key Highlights
According to the updated DRHP filed with SEBI:
- Fresh Issue Size: ₹3,100 crore
- Offer for Sale (OFS): ₹720 crore by co-founders Pandey and Boob, equally offloading ₹360 crore each
- Use of Proceeds:
- ₹460.6 crore for setting up new offline and hybrid centres
- ₹548.3 crore to cover lease payments for identified centres
- ₹200.1 crore to strengthen cloud and server infrastructure
- ₹710 crore for marketing initiatives and brand expansion
- ₹47.2 crore in subsidiary Xylem Learning
- ₹33.7 crore for lease payments of Utkarsh Classes centres
- ₹26.5 crore for acquiring more stake in subsidiaries
- Remaining funds for acquisitions and general corporate purposes
PhysicsWallah plans to raise ₹3,820 crore via IPO, with ₹3,100 crore as fresh issue and ₹720 crore OFS. The funds will be used for offline expansion, technology infrastructure, and marketing.
Market & Industry Impact of PhysicsWallah IPO
The Indian edtech sector has undergone significant shifts since the pandemic. While many startups struggled with profitability amid reduced online demand, PhysicsWallah differentiated itself through a low-cost, hybrid learning model.
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The company’s IPO marks one of the largest public offerings in the Indian education sector, following the listings of companies such as Veranda Learning and Career Point.
With the Indian online education market projected to cross $5 billion by 2027, analysts believe PhysicsWallah’s hybrid-first model positions it well to capture a broader share of the market.
Expert Insights on the IPO
Market analysts suggest the IPO could be a litmus test for edtech startups going public.
“PhysicsWallah’s strong offline presence, combined with an affordable pricing strategy, provides resilience compared to peers. However, sustaining growth while maintaining profitability will be key post-listing,” said a Mumbai-based edtech sector analyst.
Investors are also watching closely, given that PhysicsWallah has reduced its net loss by 78.5% in FY25, reporting a loss of ₹243.3 crore against ₹1,131 crore in FY24, while operating revenue surged 49% year-on-year to ₹2,886.6 crore.
Future Outlook for PhysicsWallah
The DRHP filing highlights PhysicsWallah’s expansion plans into new cities with more offline centres and hybrid classrooms, particularly targeting UPSC, NEET, and state-level exam categories.
The company recently acquired a 40% stake in Delhi-based UPSC coaching platform Sarrthi IAS at a valuation of ₹250 crore, with plans to raise its stake to 85% by FY31.
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In addition, PhysicsWallah is expected to increase its B2B partnerships with schools and coaching institutions and expand its AI-driven adaptive learning platforms to improve student outcomes.
With IPO-bound startups like Urban Company and DevX also gearing up for market debuts, PhysicsWallah’s listing will add momentum to India’s startup IPO wave, reflecting the growing investor appetite for tech-driven education companies.
Disclaimer
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