Physics Wallah Seeks Investment Bankers For IPO In 2025

SUMMARY

The edtech major has lined up pitches from as many as 10 investment bankers next week for an IPO in 2025

Physics Wallah plans to “aggressively pursue” its listing plans and is eyeing a valuation north of $2.8 Bn, the number at which it was pegged earlier this month

The development comes just days after Physics Wallah raised $210 Mn in its Series B funding round led by Hornbill Capital

Fresh off its recent $210 Mn fundraise, edtech unicorn Physics Wallah has reportedly set its eyes on listing on the stock exchanges next year.

The edtech major has lined up pitches from investment bankers next week for a proposed initial public offering (IPO) in 2025, Moneycontrol reported citing sources.

“RFPs (request for proposals) have been sent to at least 10 investment banks, inviting them to make IPO pitches which are scheduled for the coming week. These are early days and no final call has been taken but the intent to list is there,” a source was quoted as saying.

Another source told the publication that the startup plans to “aggressively pursue” its listing plans and is eyeing a valuation north of $2.8 Bn, the number at which it raised its latest funding earlier this week.

Inc42 has reached out to Physics Wallah seeking comments on the development. The story will be updated on receiving a response.

Physics Wallah will become India’s first edtech startup to list on stock exchanges if its IPO plans go through.

On Friday (September 20), the edtech startup said it raised $210 Mn in its Series B funding round led by Hornbill Capital. The round also saw participation from Lightspeed Venture Partners and existing investors GSV Venture and WestBridge Capital.

Founded in 2020 by Alakh Pandey and Prateek Maheshwari, Physics Wallah operates tech-enabled offline and hybrid centres for K-12 students across 105 cities in the country. Its offerings also include test preparation verticals across various exams, a skilling arm and study abroad verticals.

It entered the unicorn club in 2022 by raising $100 Mn in its maiden funding round from WestBridge and GSV at a valuation of $1.1 Bn. It competes with the likes of BYJU’S, Unacademy, Vedantu, among others.

Physics Wallah’s net profit declined over 90% year-on-year (YoY) to INR 8.9 Cr in FY23, while operating revenue jumped 234% YoY to INR 779.3 Cr. Its cofounder and CEO Maheshwari told Inc42 that the startup clocked a revenue of INR 1,975 Cr in FY24.

The development comes at a time when the country’s edtech ecosystem is in disarray. The pandemic-fuelled growth of edtech startups fizzled out as schools reopened, forcing many to experiment with offline models.

However, the situation exacerbated when funding winter dried up capital for edtechs even as their losses continued to grow manifold. Many of their high-profile acquisitions also failed to take off, resulting in startups like BYJU’S and Unacademy undertaking mass layoffs in the last two years.

Physics Wallah’s IPO plans also come at a time when a slew of Indian startups are looking to list on the bourses. As many as ten new-age tech companies have listed on the Indian stock exchanges so far this year, while many others are also looking to make their market debut owing to positive market sentiment and growing investor appetite for startup IPOs.