India’s edtech sector is about to witness one of its most anticipated public issues as PhysicsWallah (PW) files UDRHP with the Securities and Exchange Board of India. Founded by the educator Alakh Pandey, PhysicsWallah has transformed from a humble YouTube channel into a full-fledged education powerhouse.
With a proposed issue size of INR 3,820 crore, the IPO is not just a fundraising exercise but a defining moment for the entire education technology ecosystem in India. The offering consists of a fresh issue worth INR 3,100 crore and an offer-for-sale (OFS) of INR 720 crore, where both co-founders – Alakh Pandey and Prateek Boob – will dilute share worth INR 360 crore each.
PhysicsWallah IPO will be managed by Kotak Mahindra Capital Company, JP Morgan India, Goldman Sachs (India) Securities, and Axis Capital. MUFG Intime is the registrar of the issue.
PhysicsWallah IPO: Company’s Journey to the Market
PhysicsWallah began its journey in 2016 as a YouTube channel where Alakh Pandey’s unique teaching style attracted millions of students preparing for JEE and NEET. In 2020, it formally incorporated as PhysicsWallah and within just a few years, scaled up to become a unicorn edtech startup.
PW’s mission has remained consistent: to make quality education affordable and accessible. Today, it serves students across online platforms, offline coaching centers, and hybrid learning models. The company’s ethos has always been to ensure that financial background does not restrict access to good education—a philosophy that has resonated strongly with India’s aspirational middle class.
Backed by marquee investors such as WestBridge, GSV Ventures, Hornbill Capital, and Lightspeed, the company has grown rapidly in scale while maintaining a strong community-first approach.
PhysicsWallah’s Business Model
PhysicsWallah runs on a multi-channel business model, combining online, offline, and hybrid learning:
- Online Learning: Through apps, website, and social media channels, PW reaches millions of students with both free and paid batches. Flagship offerings like Batch Infinity and Infinity Pro bundle courses with AI-driven tools, practice modules, and mentoring.
- Offline Centers: PW operates nearly 200 centers across India and the Middle East, under formats such as Vidyapeeth (face-to-face coaching) and Pathshala (hybrid model).
- Hybrid Learning: The unique two-teacher model allows classes delivered live from studios while local faculty resolve doubts in real time.
- Other Services: Beyond classes, PW has ventured into e-commerce (PW Store), residential/hostel services, counselling (Acadfly, Medharthi), and franchise partnerships.
Revenue comes from course fees, test series, books & merchandise, hostel services, and franchise income. This diversified structure gives PW both scale and stability, reducing dependence on a single stream.
PhysicsWallah Course Offerings & Student Base
PW today operates across 13 Education Categories, making it one of the most diversified players in the Indian edtech landscape. Its offerings include:
- Flagship Courses: JEE, NEET, and Foundation programs remain the backbone, attracting the largest student cohorts.
- Other Test Prep: Civil Services (UPSC/SPSC), GATE, CA, MBA, Defence, CUET, Commerce, and government job exams.
- Curious Junior: Targeting classes 3–8 with interactive learning, already boasting 33.9 lakh app downloads.
- Skills & Professional Upskilling: Courses in data science, AI, product management, digital marketing, finance, and more.
- Institutional Courses: Through the Institute of Innovation (IOI), PW runs residential programs in technology and management.
By FY25, PW reported 46.7 lakh unique transacting users online, with strong growth in offline centers. Student engagement metrics also improved significantly, with average daily engagement time rising to 111 minutes per student.
PW’s strategy of offering content in seven languages (English, Hindi, Telugu, Kannada, Bengali, Malayalam, Gujarati) ensures inclusivity across geographies, further strengthening its position as a pan-India education brand.
Pedagogy & Technology Edge
At the heart of PhysicsWallah’s success is its ability to blend traditional teaching excellence with technology.
- Faculty Strength & Training: As of 31 March 2025, PW had 5,096 faculty members (employees and consultants). This pool includes teachers, content developers, and dedicated doubt-resolution experts. The company follows a structured hiring and training model through its Faculty Training Program (FTP), ensuring consistency in pedagogy and continuous skill enhancement.
- Content Library: PW has built one of the largest educational content repositories in India: 3,582 books and over 82 lakh question banks. Content is standardized across channels and aligned with government syllabi and exam requirements.
- AI & Tech Suite (Alakh AI): PW has differentiated itself with a robust lineup of AI-driven tools:
- AI Guru (personal tutor, 24×7, multi-modal query resolution)
- Smart Doubt Engine (real-time in-class doubt clustering)
- AI Grader (automated grading of subjective answers)
- AI Sahayak (goal setting, backlog management, study tracking)
- LearnOS (focus-enhancing app launcher with “Tapasya Mode”)
- NCERT Pitara & Nugget-o-Verse (bite-sized learning and revision tools)
- PW Drona (teacher dashboard app)
- Gamification & Engagement: Tools like Level Up leaderboards, polls, quizzes, and “Dangal” competitions drive motivation and improve outcomes. This tech-enabled pedagogy has helped increase student engagement time from 93 minutes in FY23 to 111 minutes in FY25.
Offline & Hybrid Expansion
PW’s rapid physical expansion is a core differentiator, blending the trust of offline coaching with the scale of digital learning.
- Center Network: By March 2025, PW operated 198 offline centers across India and the Middle East. These include:
- 79 Vidyapeeth Centers – traditional classroom teaching for JEE/NEET/Foundation
- 47 Pathshala Centers – hybrid two-teacher model
- 19 PW Other Centers – subject-specific formats (CA, Defence, OnlyIAS, IOI etc.)
- Subsidiaries – Xylem (Kerala-focused JEE/NEET), Utkarsh Classes (government jobs), Knowledge Planet (Middle East), OnlyIAS (UPSC/SPSC prep)
- Franchise Model: PW increasingly uses a franchise-led approach, especially for Pathshala centers. By FY25, 33 centers were franchise-operated, up from just 2 in FY23. Franchise partners handle infrastructure, while PW provides teaching, content, and tech integration.
- Residential/Hostel Services: With 216 residential complexes (192 under Xylem, 24 under Vidyapeeth), PW is expanding into hostel facilities, providing students with mentorship, food, transport, and wellness support.
- Geographic Reach: Presence in 109 cities across India and 13 centers in the Middle East (UAE, Oman, Saudi Arabia). This gives PW a significant edge in diversifying revenue streams beyond metros and Tier-1 cities.
PhysicsWallah IPO: Financial Performance
PhysicsWallah has demonstrated rapid scale-up in just three years, with strong topline growth and offline becoming a major revenue driver.
Key Financial & Operational Metrics
| Particulars | FY23 | FY24 | FY25 | CAGR / Trend |
|---|---|---|---|---|
| Revenue from Operations | 744.32 | 1,940.71 | 2,886.64 | ↑ CAGR ~96.9% |
| EBITDA | 13.85 | (829.35) | 193.20 | Turned Positive in FY25 |
| EBITDA Margin (%) | 1.86 | (42.73) | 6.69 | Margin Recovery |
| PAT / Restated Loss | (84.08) | (1,131.13) | (243.26) | Losses Narrowing |
| EPS (INR) | (0.38) | (4.79) | (0.86) | Negative |
Operational Highlights
| Metric | FY23 | FY24 | FY25 | Trend |
|---|---|---|---|---|
| Avg. Daily Engagement Time (minutes) | 93 | – | 111 | ↑ |
| Unique Online Transacting Users (lakh) | 20.0 | 3.86 | 4.68 | ↑ 56.8% CAGR |
| Faculty Strength | 2,436 | 3,654 | 5,096 | ↑ |
| Refunds to Students (in Cr) | 8.70 | 23.04 | 26.15 | ↑ |
Insights
- Revenue Growth: From FY23 to FY25, revenue from operations surged nearly 4x, at a CAGR of ~96.9%.
- Offline Boom: Offline centers are the backbone, contributing INR 1,351.87 crore in FY25, with Delhi NCR (11.2%), Patna (9.4%), Calicut (8.8%), and Kota (4.2%) as leading markets.
- Profitability: After steep losses in FY24, PW turned EBITDA-positive in FY25 (INR 140.8 cr), though at the PAT level, it continues to post losses (INR 243.26 cr).
- Student Stickiness: Higher engagement (111 mins/day) and growing online transacting users (4.68 mn in FY25) underline strong user retention.
- Scholarships & Refunds: With INR 26.15 cr refunded in FY25, PW maintains affordability through merit-based scholarships and loan tie-ups.
PhysicsWallah IPO: Shareholding Pattern & Key Investors
As of the Updated Draft Red Herring Prospectus (UDRHP-I), major shareholders holding 1% or more are:
| Shareholder | Equity Shares (FD basis) | % of Pre-Offer Capital |
|---|---|---|
| Alakh Pandey (Founder & CEO) | 1,05,12,00,000 | 40.35 |
| Prateek Boob (Co-Founder & Director) | 1,05,12,00,000 | 40.35 |
| WestBridge AIF I | 16,69,82,670 | 6.41 |
| Hornbill Capital Partner | 11,51,34,561 | 4.42 |
| GSV Ventures Fund III, L.P. | 7,43,78,413 | 2.85 |
| Lightspeed Opportunity Fund II, L.P. | 4,66,98,120 | 1.79 |
| Setu AIF Trust | 3,63,34,973 | 1.39 |
| Total | 2,54,19,28,737 | 97.56 |
PhysicsWallah IPO: Utilization of Funds
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
Growth Strategy
PhysicsWallah’s growth plan rests on four pillars:
- Expanding the Market Opportunity: India’s education sector, valued at INR 15–16 lakh crore in FY25, is expected to grow at ~10% CAGR to INR 24–26 lakh crore by FY30. PW plans to capture this through deeper penetration in Tier-2/3 cities and newer categories.
- Tech-First Differentiation
- Upcoming products like AI NCERT (interactive NCERT textbooks) and personalized AI study paths are expected to enhance stickiness.
- Continuous cloud infra expansion ensures scalability.
- Content & Category Expansion
- Deeper foray into skills, institutional courses, Curious Junior, and state board exams.
- New formats like small cohort classes (<300 students) for premium, high-interaction experiences.
- Inorganic Growth: Acquisitions of Xylem, Utkarsh, Knowledge Planet, and Guiding Light (Sarrthi IAS) show PysicsWallah’s appetite for inorganic expansion.
- The IPO proceeds will further fuel acquisitions and partnerships across geographies.
Education Industry Overview
- Size & Growth: India’s education market stood at INR 15–16 lakh crore in FY25, about 5% of GDP. As per Redseer, it is projected to grow at a ~10% CAGR, reaching INR 24–26 lakh crore by FY30.
- Test Prep Demand: Test preparatory courses grew at a ~11% CAGR between FY22–25, reflecting strong demand from aspirants for JEE, NEET, UPSC, GATE, and other exams.
- Demographics Tailwind: A large youth population, rising aspirations of parents, and increasing willingness to pay for quality education continue to drive demand.
- EdTech Resilience: Education remains a non-discretionary sector, less affected by market cycles, with offline + hybrid formats gaining renewed traction post-COVID.
Risks & Challenges
Despite its rapid rise, investors must weigh the following risks:
- Profitability Pressure: While EBITDA turned positive in FY25, net losses persist (INR 243.26 crore). Sustained profitability remains unproven.
- High Refunds: Refunds of INR 26.15 cr in FY25 highlight the challenges of student drop-outs and competitive pricing pressures.
- Intense Competition: Rivals like Byju’s, Unacademy, Allen, and Vedantu remain strong, especially in flagship categories like JEE/NEET.
- Regulatory Uncertainty: The education sector is tightly regulated; compliance with India’s Digital Personal Data Protection Act, 2023 and evolving guidelines is critical.
- Scalability Risks: Maintaining consistent pedagogy and faculty quality across 198 offline centers and millions of online learners is a major execution challenge.
Conclusion
PhysicsWallah IPO comes at a pivotal moment:
- The company has built a student-first, tech-backed, multi-channel ecosystem that has scaled from a YouTube channel to a INR 2,880 crore revenue machine in just three years.
- Its strengths lie in affordable pricing, hybrid expansion, strong brand equity, and AI-driven pedagogy.
- However, profitability, scalability, and competition remain key hurdles.
For investors, PW IPO represents a high-growth but high-risk play in India’s booming education market. Much like the sector it serves, success will hinge on sustained learning outcomes and the company’s ability to deliver both scale and sustainability.
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