India’s Edtech Unicorn Heads Towards Public Markets
PhysicsWallah, the homegrown edtech giant that began as a humble YouTube channel, has officially moved a step closer to the stock markets. The company has filed an updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its much-anticipated initial public offering (IPO) worth ₹3,820 crore.
The IPO will include a fresh issue of shares worth ₹3,100 crore, while the promoters will offload shares worth ₹720 crore through an Offer for Sale (OFS). Notably, co-founders Alakh Pandey and Prateek Maheshwari will each sell shares worth up to ₹360 crore.
This move marks a major milestone for India’s edtech sector, which has seen a slowdown in private funding and is now looking at public markets for growth capital.
What PhysicsWallah Plans to Do with the IPO Money
According to the filings, PhysicsWallah will allocate the fresh funds to expand and strengthen its operations. The breakdown is as follows:
- ₹460 crore: Opening new offline centres across India
- ₹548 crore: Lease costs for physical campuses
- ₹470 crore: Investments in subsidiaries like Xylem and Utkarsh
- ₹200 crore: Building cloud and server infrastructure
- ₹710 crore: Marketing and brand expansion
The company is betting big on a hybrid model that blends online teaching with offline learning centres, especially in Tier-II and Tier-III cities where it already enjoys strong traction.
Risks and Challenges Ahead
While the IPO looks promising, PhysicsWallah has also highlighted certain risks in its updated draft. These include:
- Heavy reliance on test-prep categories such as JEE and NEET
- Rising regulatory scrutiny on edtech companies
- Intense competition from both startups and established players
Analysts believe that the company’s ability to diversify beyond test preparation will be crucial in sustaining long-term growth.
From YouTube to Unicorn: The PhysicsWallah Story
A Remarkable Journey
Founded in 2016 by teacher-turned-entrepreneur Alakh Pandey, PhysicsWallah began as a free YouTube channel offering physics lessons to students preparing for engineering and medical entrance exams. Over the years, it has transformed into a full-stack education platform offering courses across:
- K-12 school education
- Competitive exams (JEE, NEET, UPSC, State-level)
- Study abroad programs
- Degree and upskilling courses
Today, the company caters to over 2 million students annually and operates a mix of online and offline centres under brands like Knowledge Planet, Xylem Learning, and Utkarsh Classes.
Funding and Growth
PhysicsWallah entered the coveted unicorn club in 2022 after raising $100 million from WestBridge and GSV Ventures. Since then, it has raised a total of $312 million in funding, including a $210 million Series B round in September 2024.
Its financial performance has also shown remarkable growth:
- FY23: ₹744 crore revenue, ₹85 crore loss
- FY24: ₹1,940 crore revenue, ₹1,127 crore loss
- FY25: ₹2,886 crore revenue, ₹240 crore loss
The reduced losses in FY25 highlight the company’s improving efficiency and stronger business model.
Expert Take: Why This PhysicsWallah IPO Matters
Market experts say PhysicsWallah’s IPO is more than just a fundraising event—it’s a litmus test for India’s edtech industry.
“Private funding has slowed down significantly for edtech firms. If PhysicsWallah’s IPO succeeds, it could pave the way for others like Classplus, Jaro Education, and Eruditus to hit the markets,” said an investment banker familiar with the matter.
The company has already roped in heavyweights like Kotak Mahindra, JP Morgan, Goldman Sachs, and Axis Capital as book-running lead managers for the issue.
Reactions from the Education Sector
The news of PhysicsWallah’s IPO has sparked discussions among students, parents, and industry veterans. Many see it as validation of the shift towards affordable digital education in India.
Students have credited the platform for democratizing access to quality education, especially in smaller towns where coaching options are limited. Parents, however, remain watchful of the company’s ability to maintain affordability after going public.
FAQs on PhysicsWallah’s IPO
What is the size of PhysicsWallah’s IPO?
Who is selling shares in the Offer for Sale?
How will the IPO proceeds be used?
When will the IPO launch?
Why is this IPO significant?
The Bottom Line
PhysicsWallah’s IPO could redefine the future of Indian edtech. From its humble beginnings on YouTube to filing for a multi-thousand-crore IPO, the company has already rewritten the rules of education. The real test, however, will be how it balances growth, competition, and affordability while navigating the challenges of being a listed entity.