PhysicsWallah reserves Rs 460 Cr from IPO proceeds for offline expansion
Edtech unicorn PhysicsWallah PW intends to invest the amount between PW Vidyapeeth centres for JEE, NEET, and foundation courses, Pathshala centres offering live-streamed classes with local faculty support, and PW Other Centres.
Edtech unicorn , which is eyeing an initial public offering (IPO), is planning to ramp up its offline presence in the country and select overseas markets.
With a planned raise of Rs 3,820 crore from the IPO, the company has designated Rs 460.55 crore to expand its offline and hybrid centre network in India.
The edtech intends to allocate Rs 234.37 crore to grow PW Vidyapeeth centres for JEE, NEET, and foundation courses, Rs 49.89 crore for hybrid Pathshala centres offering live-streamed classes with local faculty support, and Rs 176.29 crore for PW Other Centres serving defence, accounting, government exams, and vocational courses.
All centres will operate on a leasehold basis, with locations to be finalised based on demand, lease economics, and other business conditions. PhysicsWallah also intends to expand into Tier II and III cities, including Muzaffarpur, Dhanbad, Akola, Latur, Rajkot, Ujjain, Bhatinda, Jorhat, and Chennai.
As of March 31, 2025, PhysicsWallah operated 198 offline centres across 109 cities in India and the Middle East. The offline network grew at a CAGR of 165.9% between FY23 and FY25, reflecting a shift from its digital-first model.
PhysicsWallah had filed an updated draft red herring prospectus (DRHP) with the market regulator. The IPO would comprise 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, including Alakh Pandey and Prateek Maheshwari, who will offload shares worth Rs 360 crore each.
The DRHP noted that expansion decisions are guided by data from the company’s online student base to identify demand clusters and inform centre type and course offerings.
The fundraising will also help strengthen brand presence in existing cities and diversify offerings beyond engineering and medical entrance exams, the company noted in a statement. It also noted that offline centres provide a steadier revenue stream and opportunities for add-on services such as test series and region-specific exam preparation.
Edited by Kanishk Singh