PhysicsWallah (PW), an Indian edtech unicorn, is preparing to enter the public market with an initial public offering (IPO) aiming to raise ₹3,820 crore. The company has filed an updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) for this purpose.

Key Highlights of the IPO

• Offer Details: The IPO will consist of a fresh issue of shares worth ₹3,100 crore and an offer for sale (OFS) of ₹720 crore by the company's co-founders, Alakh Pandey and Prateek Boob. Each co-founder will offload shares worth ₹360 crore.
• Stake of Founders: Currently, Alakh Pandey and Prateek Boob each hold a 40.35% stake in PhysicsWallah.
• Utilization of Funds: PhysicsWallah plans to use the capital raised through the IPO for several strategic initiatives. A significant portion, ₹710 crore, is earmarked for marketing and brand outreach. Approximately ₹460.6 crore will be invested in setting up new offline and hybrid learning centers, while ₹548.3 crore is allocated for lease payments for existing centers. Additionally, ₹47.2 crore will be invested in its subsidiary, Xylem Learning. A further ₹200.1 crore will be used to strengthen its digital infrastructure. The remaining funds will be reserved for acquisitions and general corporate purposes.
• Financial Performance: PhysicsWallah has demonstrated substantial revenue growth, with operating revenue jumping 49% to ₹2,886.6 crore in FY25 from ₹1,940.7 crore in FY24. The company has also managed to reduce its net losses by 78.5% to ₹243.3 crore in FY25 from ₹1,131 crore in the previous fiscal year.
• Lead Bankers: JPMorgan India Pvt., Axis Capital Ltd., Goldman Sachs (India), and Kotak Mahindra Capital Co. are the lead bankers for the IPO.

PhysicsWallah's Business and Growth

• Founding and Expansion: PhysicsWallah was founded in 2016 by Alakh Pandey as a YouTube channel and was officially incorporated in 2020. It has evolved into a comprehensive education platform that offers online classes, offline centers, test preparation, and skilling programs.
• Market Presence: The company has a strong presence both online and offline. As of July 15, 2025, its main YouTube channel had nearly 13.7 million subscribers. By March 31, 2025, it operated 198 offline centers. PhysicsWallah's overall YouTube network had 98.8 million subscribers as of June 30, 2025.
• User Base: The platform had 44.6 lakh paid users in FY25, reflecting a CAGR of 59% between FY23 and FY25.
• Acquisitions and Partnerships: PhysicsWallah has expanded its reach through strategic acquisitions, including Utkarsh Classes and Xylem Learning.
• Growth Strategy: The company's growth strategy focuses on geographical expansion and diversification of educational offerings. This includes increasing its offline presence, enhancing hybrid learning models, and expanding into new test preparation categories and skilling initiatives.

Other Key Points

• PhysicsWallah filed its draft papers with SEBI through a confidential pre-filing route in March and received approval in July.
• The company's revenue jumped significantly from ₹24.6 crore in FY21 to nearly ₹2,000 crore in FY24.
• PhysicsWallah is backed by investors such as WestBridge Capital, Hornbill Capital, GSV Ventures, and Lightspeed Venture Partners.
• PhysicsWallah aims to enhance educational quality and reach rural and semi-urban areas through upgraded content and localized learning initiatives.
• PhysicsWallah will be the first Indian edtech company to test the public markets after a period of turbulence in the sector.