Bizarre: PhysicsWallah describes flying slipper as risk in IPO filing
What's the story
In a rather unusual turn of events, ed-tech start-up PhysicsWallah has flagged a bizarre incident in its Draft Red Herring Prospectus (DRHP). The document cites an incident from 2023 where a student allegedly threatened a teacher with a slipper during an online class. The company considers this incident as an operational and reputational risk, especially with its expansion into offline centers.
Student behavior
Other incidents include staff pushing student
The slipper incident is a stark reminder of the challenges that come with managing young students in an educational setting. The company has also cited other incidents, including a video of a staff member pushing a student at one of its offline centers. The staffer was later terminated after an internal investigation into the matter.
IPO details
IPO to raise ₹3,820cr
Founded as a company in 2020, PhysicsWallah is planning to raise ₹3,820 crore through its initial public offering (IPO). The offer includes a fresh issue of equity shares worth ₹3,100 crore, and an offer for sale (OFS) of stocks aggregating up to ₹720 crore by promoters Alakh Pandey and Prateek Maheshwari. Both will offload shares worth ₹360 crore each through the OFS.
Business strategy
Backed by WestBridge Capital, Hornbill and GSV Ventures
PhysicsWallah offers test preparation courses for competitive exams like JEE, NEET, GATE, and UPSC. The firm operates through online platforms (YouTube, website, apps), some tech-enabled offline centers, and hybrid centers that combine the online teaching with in-person support. Backed by WestBridge Capital, Hornbill and GSV Ventures, PhysicsWallah trimmed its losses to ₹243 crore in the year ending March 2025 from ₹1,131 crore a year ago.