PhysicsWallah, the prominent Indian edtech firm, is reportedly preparing for its highly anticipated Initial Public Offering (IPO) in the coming weeks. The company aims to raise a substantial ₹3,820 crore (approximately $458 million) through this public issue, according to a Bloomberg report, while this move is poised to make PhysicsWallah the first edtech startup to list on the Indian stock exchanges, signifying a pivotal moment for the country's rapidly expanding online education sector. The report indicates that the company has engaged in discussions with potential investors, signaling its readiness for the market debut.
IPO Structure and Fund Utilization
The draft for PhysicsWallah's IPO was initially filed confidentially in March 2025, receiving SEBI approval in July, followed by an updated Draft Red Herring Prospectus (DRHP) submission in September 2025. The IPO will comprise a fresh issue of shares worth ₹3,100 crore, alongside an Offer for Sale (OFS) of ₹720 crore by existing shareholders, including co-founders Alakh Pandey and Prateek Maheshwari. The capital raised from the fresh issue is earmarked for strategic growth initiatives. A significant portion, ₹710 crore, will be allocated to marketing efforts. Also, ₹548 crore will cover lease payments for existing offline and hybrid centers, while ₹460 crore is designated for capital expenditure on new centers. A further ₹471 crore will be invested in its subsidiary, Xylem Learning Private Limited, highlighting the company's expansion plans.
Shareholding and Investor Profile
As per the prospectus, co-founders Alakh Pandey and Prateek Maheshwari currently hold a substantial 40. 35% stake each in the company. Among the institutional investors, WestBridge Capital LLP holds 6. 41%, and Hornbill Capital Partners owns 4, while 42%. The OFS component of the IPO will provide these early investors and founders. With an opportunity for a partial exit, while also ensuring liquidity for their investments. This move is common for mature startups transitioning to public ownership, allowing them to monetize their stakes and diversify their portfolios.
PhysicsWallah has demonstrated remarkable growth in its user base, reporting 44. 6 lakh paid users in FY2025. This figure represents an impressive Compound Annual Growth Rate (CAGR) of 59% between FY2023 and FY2025, underscoring the company's strong market penetration and appeal. In September 2024, the company successfully raised $210 million at a valuation of $2. 8 billion. With the upcoming IPO, PhysicsWallah is now aiming for a valuation of approximately $5 billion. Financially, the company recorded a revenue of ₹1,940 crore in FY2024 but also reported a loss of ₹1,130 crore during the same period. The funds from the IPO are crucial for fueling its expansion plans and steering the company towards sustained profitability.
Impressive User Growth and Financial Overview
Paving the Way for Edtech on the Stock Market
PhysicsWallah's IPO marks a watershed moment for the Indian edtech sector. Its listing won't only unlock new avenues for growth for the company but also potentially pave the way for other edtech startups to tap into public markets, while with the increasing digitalization of education, the demand for platforms like PhysicsWallah continues to surge. This IPO is expected to bolster investor confidence in the Indian startup ecosystem, encouraging further innovation and development. It also serves as a testament to the growing acceptance and integration of online learning within the Indian educational landscape, setting a precedent for future market entries.
