PhysicsWallah eyes Rs 3,820 Cr through IPO, updates draft papers with SEBI

Noida-based edtech unicorn PhysicsWallah has filed updated draft papers with the markets regulator Securities and Exchange Board of India (SEBI) through an initial public offering (IPO) for expansion and growth initiatives.

The proposed IPO comprises a fresh issue of equity shares worth Rs 3,100 crore and an offer for sale (OFS) of shares aggregating up to Rs 720 crore by promoters, according to the updated draft red herring prospectus (UDRHP) filed on Saturday, September 6.

Both promoters, Alakh Pandey and Prateek Maheshwari, will each offload shares worth Rs 360 crore through the OFS. At present, both hold 40.35% stake each in the company.

Of the fresh issue proceeds, PhysicsWallah said Rs 460.5 crore will go towards fit-outs of new offline and hybrid centres, and Rs 548.3 crore will be used for lease payments of existing centres. The company will invest Rs 47.2 crore in its subsidiary Xylem Learning, including Rs 31.6 crore for new centres and Rs 15.5 crore for lease payments and hostels.

A further Rs 33.7 crore will be directed to Utkarsh Classes & Edutech for lease payments of its centres. Additionally, Rs 200.1 crore is earmarked for server and cloud infrastructure, Rs 710 crore for marketing initiatives, and Rs 26.5 crore for acquiring an additional stake in Utkarsh Classes.

PhysicsWallah filed draft papers in March with SEBI for an IPO through a confidential pre-filing route and received the market regulator's approval in July. Following this, the companies are required to file an updated DRHP before filing an RHP. The company opted for the confidential pre-filing route, which allowed it to withhold public disclosure of IPO details until later stages.

The edtech unicorn offers test preparation courses for competitive exams focusing on JEE, NEET, GATE and UPSC, along with upskilling programmes, delivered through online platforms (YouTube, website, and apps), tech-enabled offline centres, and hybrid centres that combine online teaching with in-person support.

Its main YouTube channel, Physics Wallah-Alakh Pandey, had about 13.7 million subscribers as of July 15, 2025, while its overall YouTube network had 98.8 million subscribers by June 30, 2025, growing at a CAGR of 41.8% between FY23 and FY25. Apart from its strong digital presence, PhysicsWallah has also built a significant offline footprint.

The company is backed by WestBridge Capital, Hornbill, and GSV Ventures, and has narrowed its losses to Rs 243 crore in the year ended March 2025, from Rs 1,131 crore in the preceding year. However, revenue rose to Rs 2,887 crore, up from Rs 1,941 crore in the same period. Kotak Mahindra Capital Company, JP Morgan India, Goldman Sachs (India) Securities and Axis Capital have been roped in by the company to manage its public offering.