India’s edtech powerhouse, PhysicsWallah Ltd, is gearing up for a major milestone—a ₹3,820 crore Initial Public Offering (IPO). The company has submitted an updated Draft Red Herring Prospectus (DRHP) to SEBI, signaling its intent to go public on both the BSE and NSE.
IPO Breakdown
- Total Issue Size: ₹3,820 crore
- Fresh Equity: ₹3,100 crore
- Offer for Sale: ₹720 crore
- Promoters Alakh Pandey and Prateek Maheshwari (listed as Prateek Boob) will each sell shares worth ₹360 crore
Leading financial institutions including Kotak Mahindra Capital, JP Morgan India, Goldman Sachs India, and Axis Capital are managing the issue, with MUFG Intime India serving as registrar.
Business Growth Snapshot
PhysicsWallah has shown impressive growth across its verticals for the year ending March 2025:
- Online Revenue: ₹1,404 crore (up 45.5%)
- Offline Revenue: ₹1,352 crore (up 45.7%)
- Offline centers expanded from 126 to 198
- Enrollments surged from 2.3 lakh to 3.3 lakh
- Other Revenue Streams:
- Advertising & B2B: ₹131 crore (up 173.6%)
- Books & Merchandise: ₹259 crore (up 74%)
- AI Content Licensing: ₹28 crore
Operational Highlights
- Direct Expenses: ₹513 crore (up 35%) due to increased faculty fees, student support, and server costs
- Hostel & Kitchen Costs: Rose in line with higher student intake
From YouTube to Unicorn
Founded in June 2020, PhysicsWallah evolved from Alakh Pandey’s popular YouTube channel launched in 2016. Headquartered in Noida, the company now spans test prep, skill development, and international markets. Subsidiaries include iNeuron, Xylem Learning, Utkarsh Classes, and Penpencil Edu Services.
In September 2024, PhysicsWallah raised $210 million in its largest funding round led by Hornbill Capital, with participation from Lightspeed, GSV Ventures, and WestBridge Capital—valuing the company at $2.8 billion.
Despite multiple funding rounds, the founders retained about 85% equity, showcasing strong promoter confidence.
Market Position & Strategy
While competitors like Byju’s face insolvency and others pivot to offline models, PhysicsWallah continues to scale. According to a Redseer report, its FY24 marketing spend was just 10% of revenue—far leaner than peers like Unacademy, UpGrad, and Eruditus, which averaged 18%.
