PhysicsWallah seeks ₹3,800cr through IPO
What's the story
Edtech unicorn PhysicsWallah has filed updated draft papers with the Securities and Exchange Board of India (SEBI), seeking to raise ₹3,820 crore through an initial public offering (IPO). The funds will be used for expansion and growth initiatives. The proposed IPO includes a fresh issue of equity shares worth ₹3,100 crore and an offer for sale (OFS) of shares aggregating up to ₹720 crore by promoters.
Share details
Promoters to offload shares worth ₹360 crore each
The promoters of PhysicsWallah, Alakh Pandey and Prateek Boob, will each offload shares worth ₹360 crore through the OFS. Currently, both hold a 40.35% stake in the company. The Noida-based firm had filed draft papers with SEBI for an IPO via a confidential pre-filing route in March and received approval from the market regulator in July.
Fund allocation
Allocation of proceeds from fresh issue
PhysicsWallah has detailed its plans for the proceeds from the fresh issue. The company intends to spend ₹460.5 crore on fit-outs of new offline and hybrid centers, and ₹548.3 crore on lease payments for existing centers. It will also invest ₹47.2 crore in its subsidiary Xylem Learning, including ₹31.6 crore for new centers and ₹15.5 crore for lease payments/hostels.
Further investments
Investment in Utkarsh Classes & Edutech
PhysicsWallah will invest ₹33.7 crore in Utkarsh Classes & Edutech for lease payments of its centers. The company has also allocated ₹200.1 crore for server and cloud infrastructure, ₹710 crore for marketing initiatives, and ₹26.5 crore to buy an additional stake in Utkarsh Classes. PhysicsWallah offers test preparation courses for competitive exams such as JEE, NEET, GATE, and UPSC through online platforms (YouTube, website/apps) as well as tech-enabled offline/hybrid centers.
Growth trajectory
Financial performance and YouTube growth
PhysicsWallah's main YouTube channel, "Physics Wallah-Alakh Pandey," has around 13.8 million subscribers. The overall YouTube network had 98.8 million subscribers as of June 30, 2025, growing at a CAGR of 41.8% between FY23 and FY25. Backed by WestBridge Capital, Hornbill, and GSV Ventures, the company narrowed its losses to ₹243 crore in the year ending March 2025 from ₹1,131 crore in the previous year, while revenue rose to ₹2,887 crore from ₹1,941 crore during the same period.