PhysicsWallah shifts student lending strategy
The decision marks a reversal of its earlier strategy of lending through its own books and is aimed at materially reducing balance-sheet and credit-related risks.
PhysicsWallah (PW) has revised its approach to student financing, moving away from lending directly from its own balance sheet and instead partnering with regulated non-banking financial companies (NBFCs).
The move reduces the company’s direct exposure to credit risk while allowing it to continue supporting students who need financing to access educational programmes.
In a statement, the Noida-based education company said it had tied up with multiple regulated third-party NBFCs to meet students’ lending requirements. The decision marks a reversal of its earlier strategy of lending through its own books and is aimed at materially reducing balance-sheet and credit-related risks.
The announcement comes shortly after PhysicsWallah disclosed an investment of around Rs 120 crore through an equity infusion into its wholly-owned subsidiary, FinZ Finance Private Limited. However, the company has now indicated that the future strategic direction of FinZ Finance will be determined later, subject to board and regulatory approvals.
Under the revised model, PhysicsWallah will function as a technology platform connecting students with a selected group of regulated lending partners. The company said these partnerships will be structured around students’ learning journeys and academic outcomes.
The new structure is intended to preserve affordability and accessibility for learners while making the financing model more scalable and capable of reaching a wider student base.
Explaining the rationale behind the decision, PhysicsWallah Co-founder Prateek Maheshwari said, “We received feedback from our partners that our core strength lies in building communities and our online business. Our lending business is best left to regulated third-party NBFCs who have created robust underwriting capabilities.”
He added that the company had reconsidered its earlier plans after taking investor and partner feedback into account.
“We truly believe that prudent capital allocation and shareholder value remain our foremost priority and in light of the feedback received from our partners to the said announcement, we have exercised our fiduciary responsibility to revisit this decision and enable student lending through regulated third-party NBFCs.”
Founded in 2020 by Alakh Pandey and Maheshwari, PhysicsWallah has grown from a YouTube channel launched in 2016 into a multi-platform education company.