PhysicsWallah Files Updated DRHP For INR 3,820 Cr IPO

Edtech unicorn PhysicsWallah has filed its updated draft red herring prospectus (DRHP) with SEBI to raise INR 3,820 Cr through its initial public offering (IPO).

The IPO will include a fresh issue of up to of INR 3,100 Cr and an offer for sale (OFS) of up to INR 720 Cr by cofounders and promoters Alakh Pandey and Prateek Boob. Pandey and Boob  will offload shares worth INR 360 Cr each.

The two cofounders hold 40.35% stake each in PhysicsWallah ahead of the IPO. WestBridge Capital, Hornbill Capital, GSV Ventures, Lightspeed are among the major investors in the startup.

PhysicsWallah plans to utilise INR 460.6 Cr from the proceeds of the fresh issue to set up new offline and hybrid centres, and INR 548.3 Cr to cover lease payments of its already identified centres. It will invest INR 47.2 Cr in its subsidiary Xylem Learning.

Further, INR 33.7 Cr will go towards lease payments for existing offline centres of Utkarsh Classes & Edutech, and INR 26.5 Cr will be spent on acquiring additional shareholding in the subsidiary.

On the technology front, the edtech unicorn will channel INR 200.1 Cr into server and cloud infrastructure to strengthen its digital backbone and ensure smoother delivery of online and hybrid offerings. At INR 710 Cr, PhysicsWallah plans to use the highest amount from the IPO proceeds for marketing initiatives to expand brand presence and student outreach across India.

The remaining amount will be reserved for future acquisitions and general corporate purposes, giving the company flexibility to pursue strategic opportunities as they arise.

On the financial front, PhysicsWallah cut its net loss by 78.5% to INR 243.3 Cr in FY25 from INR 1,131 Cr in the previous fiscal year. Operating revenue jumped 49% to INR 2,886.6 Cr during the year from INR 1,940.7 Cr in FY24.

Earlier this week, Inc42 reported that PhysicsWallah acquired a 40% stake in Delhi-based UPSC coaching institute Sarrthi IAS at a valuation of about INR 250 Cr to strengthen its presence in the civil services exam category. 

Confirming this, the updated DRHP said that PhysicsWallah signed a share purchase agreement on September 2 to acquire a 40% stake in Guiding Light Education Technologies, which offers UPSC courses under the name Sarrthi IAS. As per the agreement, the edtech startup will acquire an additional 45% stake in Guiding Light by fiscal 2031.

It is pertinent to mention that PhysicsWallah, over the years, has made a number of acquisitions like Xylem Learning, iNeuron, and PrepOnline to enter new categories or strengthen its presence in existing categories.

PhysicsWallah currently offers courses across 13 education categories like JEE, NEET, civil services, GATE, upskilling, and more through online, offline, and hybrid channels.

The filing of the updated DRHP comes over a month after the edtech unicorn received SEBI’s nod for its confidential DRHP. It also comes amid the ongoing startup IPO boom. The public issues of two new-age tech companies – Urban Company and DevX – will open for subscription on September 10.