Physics Wallah Selects 4 Investment Bankers For $500 Mn IPO

SUMMARY

Physics Wallah has shortlisted Axis Capital, Kotak Mahindra Capital, Goldman Sachs, and JP Morgan as the bankers for its proposed initial public offering (IPO)

The public issue will likely be a mix of fresh issuance of shares and offer for sale, while no quantum has been finalised yet and the deal size may vary later, but the proposed issue may look to raise in the range of $400 Mn to $500 Mn

Physics Wallah recently raised $210 Mn last month in a round led by Hornbill Capital, from which it managed to double its valuation to $2.8 Bn

Edtech unicorn Physics Wallah has reportedly finalised the names of four investment banking firms for its public listing next year.

A report by Moneycontrol said that the edtech startup has shortlisted Axis Capital, Kotak Mahindra Capital, Goldman Sachs, and JP Morgan as the bankers for its proposed initial public offering (IPO).

The public issue will likely be a mix of fresh issuance of shares and offer for sale. “No quantum has been finalised yet and the deal size may vary later, but the proposed issue may look to raise in the range of $400 Mn to $500 Mn,” the report quoted a source as saying.

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

The development comes days after it was reported that the edtech major sent out invitations to at least 10 investment banks to make pitches for the IPO in 2025.

Amid the funding woes of the edtech sector, Physics Wallah raised $210 Mn last month in a round led by Hornbill Capital. The startup also managed to double its valuation to $2.8 Bn.

Founded by Alakh Pandey and Prateek Maheshwari in 2020, Physics Wallah is among the few profitable edtech startups in the country. It has expanded its offerings over the years, and currently offers courses for K-12 students, test preparation, UPSC coaching, among others.

Physics Wallah’s net profit declined over 90% to INR 8.9 Cr in FY23 from INR 98.2 Cr in the previous fiscal year due to a sharp rise in its expenses. Operating revenue soared 234% to INR 779.3 Cr in FY23 from INR 233 Cr in FY22.

The unicorn’s public listing bid comes amid the ongoing IPO boom in the Indian equities market. As a result, startups have also made a beeline to list on the bourses. While 10 new-age tech companies, including Go Digit, Ola Electric, FirstCry, Unicommerce, among others, have gone public this year, the likes of Swiggy, Ecom Express, MobiKwik, among others plan to go public over the next few months.

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