Edtech platform PhysicsWallah (PW), is preparing to launch its initial public offering (IPO) to raise ₹3,820 crore for expansion and growth initiatives. The company has filed an updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).

IPO Details The IPO will consist of a fresh issue of equity shares worth ₹3,100 crore and an offer for sale (OFS) of shares aggregating up to ₹720 crore by the promoters. Alakh Pandey and Prateek Boob, each holding a 40.35% stake in the company, will offload shares worth ₹360 crore through the OFS.

PW had initially submitted its draft papers to SEBI in March 2025 through a confidential pre-filing route and received SEBI's nod for pre-filing in July. The regulator requested certain changes, after which the company was asked to post the updated DRHP publicly.

Objects of the Issue PhysicsWallah plans to utilize the funds raised through the IPO for several key purposes: * ₹460.5 crore will be allocated for fit-outs of new offline and hybrid centers. * ₹548.3 crore will be used for lease payments of existing centers. * ₹47.2 crore will be invested in its subsidiary, Xylem Learning, including ₹31.6 crore for new centers and ₹15.5 crore for lease payments and hostels. * ₹33.7 crore will be directed to Utkarsh Classes & Edutech for lease payments of its centers. * ₹200.1 crore is earmarked for server and cloud infrastructure. * ₹710 crore will be used for marketing initiatives. * ₹26.5 crore for acquiring an additional stake in Utkarsh Classes.

Company Overview

PhysicsWallah provides test preparation courses for competitive exams, including JEE, NEET, GATE, and UPSC. These courses, along with upskilling programs, are delivered through online platforms such as YouTube, websites, and apps, as well as through tech-enabled offline and hybrid centers.

As of July 15, 2025, PhysicsWallah's main YouTube channel, "Physics Wallah-Alakh Pandey," had approximately 13.7 million subscribers. The company's overall YouTube network had 98.8 million subscribers as of June 30, 2025, demonstrating a CAGR of 41.8% between FY23 and FY25.

Financial Performance

Backed by WestBridge Capital, Hornbill, and GSV Ventures, PhysicsWallah has narrowed its losses to ₹243 crore in the year ending March 2025, compared to ₹1,131 crore in the preceding year. The company's revenue has increased to ₹2,887 crore, up from ₹1,941 crore in the same period.

Shareholding Pattern

Currently, the promoters hold 82.3% stake in PhysicsWallah, with co-founders Alakh Pandey and Prateek Maheshwari each owning 40.35%. The remaining 17.7% is held by public shareholders.

Industry Context

The IPO is occurring at a time when investor confidence in the edtech sector has been impacted by the challenges faced by companies like Unacademy, Vedantu and Byju's. If successful, PhysicsWallah is poised to become India's most valuable listed edtech company, with a valuation of around $4 billion.

Book Running Lead Managers

Kotak Mahindra Capital Company, JP Morgan India, Goldman Sachs (India) Securities and Axis Capital have been appointed to manage the IPO.