PW All Set For IPO, India’s Data Centre Boom & More

PhysicsWallah’s Biggest Test Yet

PhysicsWallah is all set for its D-Street debut. The edtech giant has filed its red herring prospectus with SEBI for an INR 3,480 Cr public listing, which will open next week. So, how does the IPO of the YouTube-born unicorn stack up?

Decoding PW’s RHP: The edtech major’s public issue will comprise a fresh issue of shares worth INR 3,100 Cr and an OFS of up to INR 380 Cr. While institutional backers aren’t offloading their stakes, the promoters have slashed their OFS from INR 720 Cr to INR 380 Cr, signalling that they have skin in the game.

Cracking  The IPO Test: PW’s greatest asset is its brand appeal, Alakh Pandey’s massive student following online and a sharp focus on affordability. Paired with its solid offline footprint, the edtech major has created a phygital moat. Add to that smart acquisitions and expansion into new categories — PW has steadily diversified and unlocked new revenue streams. 

Here is a snapshot of its Q1 FY26 numbers:

• Net loss widened 78% YoY to INR 125.5 Cr 
• Operating revenue rose 33% YoY to INR 847 Cr 
• Total expenses zoomed 41% YoY to INR 1,075.5 Cr 

The Edtech Hangover: The company’s IPO is fighting the ghosts of the broader edtech sector, insolvent BYJU’S and other catastrophic edtech failures, which have left investors deeply wary of the sector. Furthermore, the edtech major is also fraught with high attrition rates among its faculty members, recent allegations of unfair terminations, an opaque review system, and a culture that prioritises student retention over educational outcomes. 

Then, there is also the growing tide of competition from offline rivals like Allen and Aakash. But the question is can PhysicsWallah ace its biggest test yet.

From The Editor’s Desk

🚀 Zepto’s IPO Back On Track

• Reviving its IPO plans, the quick commerce unicorn now aims to file its DRHP with SEBI in the next three weeks via the confidential route. The public issue will likely comprise a fresh issue of up to INR 4,500 Cr and an OFS by early backers.
• This is a sharp U-Turn from CEO Aadit Palicha, earlier this year, saying that Zepto was delaying its IPO plans to focus on improving profitability, increasing domestic ownership and managing high cash burn.
• The IPO plans come as Zepto continues to be under scrutiny over alleged food safety violations, dark patterns, a fumbling quick food delivery vertical, mounting losses, increasing competition and a waning market share. 

🤖 India’s $18 Bn AI Data Centre Boom

• Global and Indian tech giants, from Google and Microsoft to Yotta and Reliance, are ramping up AI data centre investments in India, which is projected to push India’s data centre capacity 5X by 2030.
• The boom promises jobs, real estate growth, and green energy demand but raises concerns over power use, water stress, and automation-led job losses.
• The challenge is not about building more data centres, but deploying them responsibly, ensuring real employment and data security that the country is aspiring for.

🚚 Delhivery Slips Into The Red In Q2

• The listed logistics major reported a net loss of INR 50.5 Cr in Q2 FY26 compared to a profit of INR 10.2 Cr in the year-ago quarter. The bottom line was impacted due to the integration of Ecom Express, which resulted in a loss of INR 90 Cr. 
• Excluding this, the company would have clocked a profit of INR 59 Cr. The performance came on the back of a 16% YoY jump in operating revenues to INR 2,546 Cr in Q2 and improving margins.
• Delhivery is now also foraying into the fintech space to offer working capital and vehicle financing to truckers. 

💰 MoEngage Raises A Mega Round

• The customer engagement platform has raised $100 Mn in a round co-led by existing backer Goldman Sachs Alternatives and new investor A91 Partners to expand its Merlin suite of AI agents. 
• Founded in 2014, MoEngage helps consumer brands amplify and scale customer engagement, serving more than 1,350 clients, ranging from startups to global enterprises.
• The fundraise coincides with MoEngage mulling shifting its base to India to list on the local bourses. Nevertheless, it continues to be saddled with losses, raging competition and AI disrupting the broader marketing arena. 

🍽️ Khetika’s Ready-To-Cook Recipe

• What began in 2017 as a bootstrapped experiment to fix India’s adulteration epidemic has turned Khetika into an INR 247 Cr omnichannel ready-to-cook brand that sells clean-label, zero-preservative kitchen staples.
• Eight years after inception, Khetika is now aiming for 10X revenue growth over the next two to three years. It plans to do this by expanding both globally and in India, introducing more premium product lines and tapping into quick commerce.
• But the road ahead is long. Besides supply chain and working capital challenges, the startup also faces an uphill task when it comes to taking on established and new-age rivals, which have spent years perfecting these key factors. 

Inc42 Markets

Inc42 Startup Spotlight

Can Ignosis Unlock Credit Access For India’s Underserved?

Over 30 Cr Indians and a majority of the MSMEs in the country still struggle to access formal credit. The core challenge lies in the absence of structured income data and insights required for accurate risk assessment and underwriting. Ignosis is trying to bridge this gap by building an open-banking infrastructure to help financial institutions lend smartly. 

Data-Driven Lending Stack: The startup’s AI-driven platform provides banks, NBFCs, and insurers with plug-and-play APIs that enable seamless account aggregator connectivity and advanced financial data intelligence. From identity and income verification to portfolio analytics and digital onboarding, Ignosis helps automate risk evaluation and credit decisions.

Bridging The Gap: By enabling consented, secure, and real-time access to financial data, Ignosis provides deep insights into cashflows, customer personas, and spending behaviour – enabling lenders to extend credit responsibly and inclusively.

The AI-In-Finance Opportunity: Positioned at the heart of India’s expanding digital public infrastructure, Ignosis is tapping into the $1 Tn Indian lending tech opportunity by 2030. As it looks to bridge the credit gap for millions of underserved consumers and MSMEs, can Ignosis drive the next wave of India’s financial inclusion?

Infographic Of The Day

Swiggy’s growth is racing ahead, but profits are still stuck in traffic — even as Instamart overtakes food delivery’s spotlight. But, how does the foodtech giant make money?