In a major development for India’s booming edtech sector, PhysicsWallah (PW), founded by Alakh Pandey, has filed updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI). The company plans to raise a massive ₹3,820 crore through its upcoming initial public offering (IPO), making it one of the most anticipated public listings in the education technology space.
According to the filings, the IPO will include a fresh issue of shares worth ₹3,100 crore and an offer for sale (OFS) of ₹720 crore by promoters. Both Alakh Pandey and co-founder Prateek Boob will sell shares worth ₹360 crore each as part of the OFS, while continuing to remain majority stakeholders in the company.
Fresh Issue and OFS: Breaking Down the IPO Structure
The IPO has been designed to serve dual purposes—raising fresh capital for expansion and providing liquidity to existing shareholders.
- Fresh Issue (₹3,100 crore): Funds raised will be primarily used for scaling offline operations, strengthening hybrid learning centers, enhancing cloud infrastructure, and boosting marketing initiatives.
- Offer for Sale (₹720 crore): Existing promoters will dilute part of their holdings. Currently, Pandey and Boob each hold around 40.35% stake, and the partial sale will help them monetize part of their investments while still retaining strong control.
Pre-Filing Route: A Strategic Move
Interestingly, PhysicsWallah opted for the confidential pre-filing route when it first submitted documents in March 2025. This route allowed the company to keep details of the IPO private until the later stages of approval. SEBI gave the green light in July, following which PW submitted its updated DRHP.
The confidential pre-filing method is increasingly becoming popular among startups that wish to test regulatory waters before making sensitive information public. This also helps companies adjust their offering size and structure in line with investor sentiment.
Utilization of Proceeds: Where Will the Money Go?
According to the draft prospectus, PhysicsWallah has earmarked the IPO proceeds for multiple strategic investments:
- Expansion of Offline & Hybrid Centers
- ₹460.5 crore will be used for setting up new fit-outs.
- ₹548.3 crore is allocated for lease payments of existing centers.
- Subsidiary Investments
- ₹47.2 crore for Xylem Learning, including ₹31.6 crore for new centers and ₹15.5 crore for hostels and lease payments.
- ₹33.7 crore will go towards Utkarsh Classes & Edutech for lease and infrastructure expansion.
- Technology Upgradation
- ₹200.1 crore dedicated to server and cloud infrastructure to strengthen digital learning platforms.
- Marketing and Growth Initiatives
- A significant ₹710 crore has been earmarked for aggressive marketing campaigns to further boost PhysicsWallah’s brand visibility and customer base.
- Strategic Acquisitions
- ₹26.5 crore will be used to acquire additional stake in Utkarsh Classes, strengthening PW’s position in competitive exam preparation.
PhysicsWallah’s Growth Story
Founded in 2016 by Alakh Pandey, PhysicsWallah started as a YouTube channel offering free tutorials for engineering and medical entrance exams. Over time, it expanded into a full-fledged edtech unicorn with a combination of online courses, mobile apps, and offline centers.
Today, PW is one of India’s most influential education platforms:
- The flagship “PhysicsWallah – Alakh Pandey” YouTube channel has 13.7 million subscribers as of July 15, 2025.
- Across all its channels, the network boasts 98.8 million subscribers, growing at a CAGR of 41.8% between FY23 and FY25.
- The company has established offline and hybrid centers across India, catering to students preparing for JEE, NEET, GATE, UPSC, and various state-level exams.
Financial Performance: Narrowing Losses, Rising Revenues
PhysicsWallah’s financial trajectory highlights both challenges and strong growth potential:
- Revenue (FY25): ₹2,887 crore, up from ₹1,941 crore in FY24.
- Losses: Reduced sharply to ₹243 crore in FY25 from ₹1,131 crore in FY24, showing improved cost control and efficiency.
This turnaround has caught the attention of investors, as it indicates that the company is moving closer to profitability while still maintaining aggressive growth.
Investors and Market Backing
PhysicsWallah is backed by reputed institutional investors, including WestBridge Capital, Hornbill, and GSV Ventures. Their continued support demonstrates strong confidence in PW’s ability to not just survive but thrive in a competitive edtech market dominated by Byju’s, Vedantu, and Unacademy.
The company has appointed Kotak Mahindra Capital Company, JP Morgan India, Goldman Sachs (India) Securities, and Axis Capital as lead managers for the IPO. This lineup of top-tier investment banks further boosts credibility and underlines the scale of PhysicsWallah’s market ambitions.
Why the IPO Matters
The PhysicsWallah IPO is more than just a fundraising event—it signals a maturing of India’s edtech industry. With digital learning becoming mainstream post-COVID, investors and regulators are watching how edtech firms balance profitability with growth.
For PW, the IPO will provide:
- Funds to scale offline infrastructure.
- Resources to strengthen its hybrid learning model.
- The ability to reduce dependence on private capital by tapping public markets.
The Road Ahead
As PhysicsWallah prepares for its market debut, industry watchers believe it could become a trendsetter for other Indian edtech startups. Unlike some of its peers that have struggled with mounting losses, PW’s rapid revenue growth, narrowing losses, and affordable learning model have given it an edge.
Founder Alakh Pandey has often emphasized his mission of “education for all at affordable prices.” With the IPO, the company now has the financial backing to take this mission nationwide and even global in the coming years.
The ₹3,820 crore IPO marks a defining chapter in the PhysicsWallah journey. From humble beginnings on YouTube to becoming an edtech unicorn now preparing for a public listing, the company’s growth story is inspiring millions of students and entrepreneurs alike.
If successful, this IPO could reshape India’s education technology landscape, attract more investor interest in the sector, and provide PhysicsWallah the resources to expand its footprint aggressively.
Disclaimer: This article is for informational purposes only. It does not constitute financial advice or a recommendation to invest. Investors are advised to conduct their own research or consult financial experts before making investment decisions.
