Physics Wala (PW), which was started by Alakh Pandey as a YouTube channel in 2016, has today become one of the leading edtech companies in India. The company has recently filed a draft red herring prospectus (DRHP) with SEBI for an IPO of ₹4,600 crore. In this article, we will discuss in detail about the issue size of PW’s IPO, company background, investor information and future prospects.
Issue Size and Structure of IPO
Physics Wallah’s IPO is expected to be around ₹4,600 crore. The issue will be divided into two parts:
1.Fresh Issue: Raising capital by the company by issuing new shares.
2. Offer for Sale (OFS): Sale of its shares by existing investors.
The company has filed the DRHP with SEBI in March 2025 confidentially, due to which the financial details have not been made public.
Company Background and Growth
Physics Wallah started as a YouTube channel with the aim to provide quality education to students for competitive exams like JEE and NEET. Today, PW has:
- Over 3.5 million registered students.
- Offline and hybrid centres in 100+ cities.
- Annual revenue of over ₹2,000 crore (FY24).
Investors and Ownership Structure
Physics Wallah’s key investors include:
- WestBridge Capital (largest investor)
- Hornbill Capital
- Lightspeed Venture Partners
- GSV Ventures
Company founders Alakh Pandey and Prateek Maheshwari hold 77.40% of the company’s shares, while institutional investors hold 20.47%.
Financial Performance and Valuation
Physics Wallah recently raised $210 million (approximately ₹1,750 crores) in funding, taking the company’s valuation to $2.8 billion (approximately ₹23,000 crores).
Investment Banks Selected for IPO
The Company has selected the following investment banks for the IPO process:
- Axis Capital
- Kotak Mahindra Capital
- Goldman Sachs
- JP Morgan
These banks will assist the Company in structuring and pricing the IPO.
Future of Physics Wallah IPO
The future of Physics Wala IPO comes with many golden opportunities and some significant risks for investors. It is one of India’s fastest-growing education technology companies, which has earned the trust of students by providing quality and affordable education in tier-2 and tier-3 cities.
India’s edtech sector is expected to grow rapidly by 2030, making the company’s growth prospects even stronger. Its hybrid business model—a mix of online, offline, and paid courses—helps maintain stability in revenue. However, competition from larger companies such as Byju’s and Unacademy, changes in government policies, and maintaining profitability after the IPO are some of the major challenges.
This could be an attractive opportunity for long-term investors, provided the company maintains its educational standards, technological innovation, and financial performance.
Physics Wallah aims to use the capital raised through the IPO for the following:
- Investment in new technologies.
- Acquisitions and expansion.
- Improving the quality of education.
The company aims to provide quality education in rural and semi-urban areas of India.
Physics Wallah IPO issue size
Physics Wallah has confidentially filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO) in March 2025.
The company plans to raise around ₹4,600 crore through this IPO. The issue will be divided into two parts: a fresh issue, in which the company will raise capital by issuing new shares, and an offer for sale (OFS), in which existing investors will sell their shares.
With this move, Physics Wallah is poised to become India’s first edtech company to be listed on the domestic stock market. This initiative of the company can prove to be an important milestone in the Indian edtech sector.
Conclusion
Physics Wallah’s IPO is an important milestone in the Indian edtech sector. Through this ₹4,600 crore issue, the company will not only raise capital but also realize its expansion and innovation plans. This could be an attractive opportunity for investors, especially those looking to make long-term investments in the education technology sector.