Edtech unicorn PhysicsWallah, founded by Alakh Pandey, has filed updated draft papers with market regulator SEBI to raise INR 3,820 crore through an initial public offering (IPO). The move marks the company’s long-anticipated entry into the public markets.
IPO Structure
The proposed issue includes:
- Fresh equity shares worth INR 3,100 crore
- Offer for Sale (OFS) of INR 720 crore, with promoters Alakh Pandey and Prateek Boob each divesting shares worth INR 360 crore.
Both founders currently hold a 40.35% stake each in the Noida-based company.
PhysicsWallah had earlier filed its draft papers in March under SEBI’s confidential pre-filing route, receiving regulatory approval in July. The confidential process allowed the company to withhold IPO details until later stages, before submitting the updated draft red herring prospectus (UDRHP).
Fund Utilization
According to the filing, proceeds from the fresh issue will be strategically allocated:
- Marketing and brand-building initiatives – INR 710 crore
- Lease payments for existing centres – INR 548.3 crore
- Setting up new offline and hybrid centres – INR 460.5 crore
- Server and cloud infrastructure – INR 200.1 crore
- Investment in subsidiary Xylem Learning (new centres, hostels, and leases) – INR 47.2 crore
- Lease payments for Utkarsh Classes & Edutech centres – INR 33.7 crore
- Acquisition of additional stake in Utkarsh Classes – INR 26.5 crore
Expanding Presence
PhysicsWallah, best known for its test preparation programs for JEE, NEET, GATE, and UPSC, operates through a hybrid model combining online learning (YouTube, apps, and website) with offline support centres.
Its digital footprint is massive:
- Flagship YouTube channel “Physics Wallah – Alakh Pandey” had 1.37 crore subscribers as of July 15, 2025.
- The overall YouTube network reached 9.88 crore subscribers by June 30, 2025, growing at a CAGR of 41.8% between FY23–FY25.
Alongside its digital scale, PhysicsWallah has rapidly expanded its offline centres across India, deepening its hybrid learning ecosystem.
Financials & Backers
The company is backed by WestBridge Capital, Hornbill, and GSV Ventures. It has demonstrated a strong turnaround, narrowing losses to INR 243 crore in FY25, compared to INR 1,131 crore in FY24, while revenues surged from INR 1,941 crore to INR 2,887 crore over the same period.
Lead Managers
The IPO will be managed by Kotak Mahindra Capital Company, JP Morgan India, Goldman Sachs (India) Securities, and Axis Capital.