Edtech giant Physics Wallah has confidentially filed for an initial public offering (IPO), aiming to raise up to $500 million, according to an IFR report. This move could make Physics Wallah the first pure-play edtech company to list on the Indian stock exchanges.
Strategic Move Toward Market Debut
The company had previously hinted at launching a $400-500 million IPO in 2025. If successful, it will join the ranks of Indian startups tapping into public markets to fuel their next phase of growth.
Physics Wallah has partnered with Axis Capital, Goldman Sachs, JP Morgan, and Kotak Mahindra to manage the offering. The IPO will comprise a fresh issue of shares along with an offer for sale (OFS) from existing investors. The confidential filing route, introduced by SEBI in 2022, allows companies to keep sensitive financial details private until a final decision is made.
Valuation and Growth Trajectory
Physics Wallah has seen rapid growth, raising $210 million in September 2024 at a $2.8 billion valuation. A recent secondary funding round has reportedly pushed its valuation to $3.7 billion, reflecting investor confidence. The company has raised more than $300 million to date.
In FY24, the company’s operating revenue surged by 160% to Rs 1,940 crore, although its consolidated net loss widened to Rs 1,131 crore. Despite profitability challenges, Physics Wallah remains optimistic about its long-term financial performance.
Key Investors and Market Impact
Backed by WestBridge Capital, GSV Ventures, Lightspeed Venture Partners, and Hornbill Capital, Physics Wallah is among the top edtech firms in India. The IPO plans align with its vision to expand its offline presence, enhance technology offerings, and strengthen its financial standing.
Indian Edtech Landscape and Competitive Edge
With over 5.5 million paid students, 46 million YouTube subscribers, and 14,000+ employees, Physics Wallah has established itself as a major player in India’s edtech sector. It operates offline learning centers in over 105 cities, serving 200,000+ students.
This IPO follows a broader trend of Indian startups opting for confidential pre-filings. Tata Play, Oyo, Swiggy, Vishal Mega Mart, Credila Financial Services, and Indira IVF have all taken this route before going public.
Meanwhile, competitors such as Byju’s, UpGrad, and Vedantu have also hinted at IPO ambitions, though some plans remain uncertain. Byju’s subsidiary Aakash Educational Services has faced delays in its listing process amid financial challenges.
Future Outlook
Physics Wallah’s co-founders, Alakh Pandey and Prateek Maheshwari, have emphasized their focus on long-term growth rather than short-term capital needs. With Rs 1,200 crore in treasury, they plan to invest in innovation and expansion rather than acquisitions in the near term.
“FY25 is expected to be our highest absolute EBITDA year,” they noted in a recent interview. While the online business has been profitable from day one, the company’s offline centers—requiring significant capital investment—are expected to start generating strong returns soon.
With a projected revenue of Rs 2,400 crore for FY24, Physics Wallah’s IPO will be closely watched as a key milestone for India’s evolving edtech sector.
