Noida-based PhysicsWallah (PW), a prominent Indian edtech platform, is making significant strides towards launching its Initial Public Offering (IPO) with plans to raise ₹3,820 crore. This move positions the company to potentially become the first publicly listed edtech firm in India, marking a significant milestone for the burgeoning online education sector.
The planned IPO consists of a fresh issue of shares worth ₹3,100 crore and an offer for sale (OFS) of ₹720 crore by founders Alakh Pandey and Prateek Maheshwari. While the details regarding the price band, IPO period, and listing date are yet to be announced, the company has already received approval from the Securities and Exchange Board of India (SEBI).
Founded in 2016 by Alakh Pandey as a YouTube channel to teach physics for competitive exams like JEE and NEET, PhysicsWallah gained immense popularity for its affordable and accessible education. In 2020, Pandey and Maheshwari launched the PhysicsWallah app, further expanding their reach. The company has since diversified its offerings to include courses for upskilling, government job exams, and K-12 students.
The IPO proceeds are earmarked for strategic investments, including marketing initiatives (₹710 crore), lease payments for existing offline and hybrid centers (₹548 crore), capital expenditure for new center fit-outs (₹460 crore), and investments in its subsidiary, Xylem Learning Pvt (₹471 crore). PhysicsWallah operates on a freemium model, providing substantial free content while monetizing paid courses, doubt-solving sessions, and test series.
PhysicsWallah has demonstrated rapid growth, expanding its physical footprint from 28 offline centers in FY23 to 198 in FY25. The company's revenue from operations has also seen a substantial increase, growing at a CAGR of 96.93% from ₹744.32 crore in FY23 to ₹2,886.64 crore in FY25. Its paid user base has increased from 1.76 million in FY23 to 4.46 million in FY25, representing a CAGR of 59.19%. PhysicsWallah boasts a strong online presence with 98.80 million subscribers across 207 YouTube channels as of June 30, 2025.
The company has also pursued inorganic growth through strategic acquisitions, including FreeCo, Xylem Learning, and Utkarsh Classes. As of September 2024, PhysicsWallah was valued at approximately $2.8 billion. The company is now aiming for a valuation of nearly $5 billion with its upcoming IPO.
While PhysicsWallah has achieved significant revenue growth, it has also reported losses in recent years. In FY24, the company reported a revenue of ₹1,940 crore but incurred a loss of ₹1,130 crore. PhysicsWallah faces challenges including high employee attrition rates and dependence on its founders. The edtech market in India is projected to reach $29 billion by 2030, PhysicsWallah aims to be a trailblazer among publicly listed education technology companies.
Kotak Mahindra Capital, Axis Bank, JPMorgan Chase, and Goldman Sachs are advising on the IPO. The market will be watching closely to see how PhysicsWallah balances growth, profitability, and competitive pressures in a maturing edtech landscape.
