PhysicsWallah IPO: Safety Incidents Surface in Updated Draft Papers as Edtech Unicorn Eyes Rs 3,820 Crore Raise

New Delhi, Sept. 9 – PhysicsWallah, a rapidly growing edtech unicorn in India, has mentioned a series of incidents involving the safety of students in its Draft Red Herring Prospectus (DRHP). The DRHP is being filed in connection with the company’s highly anticipated initial public offering (IPO), where the company expects to raise ₹3,820 crore.

Headquartered in Noida, incorporated in 2022, PhysicsWallah has carved a niche in the competitive test prep courses with products and services for JEE, NEET, GATE, UPSC, and professional upskilling.

When considering the company’s vast digital footprint, it’s primarily characterised by its flagship YouTube channel, Physics Wallah – Alakh Pandey, which had 13.7 million subscribers as of mid-July 2025. The brand has a total network of 98.8 million subscribers across its YouTube network. PhysicsWallah continued growing at a compound annual growth rate of 41.8% from FY23 to FY25.

The company had a strong hybrid presence, combining digital platforms with offline centres and hybrid hubs that combine both in-person and digital learning.

Highlighted Safety Incidents Amidst IPO

The new DRHP of the company describes several problematic circumstances related to online and offline activities of the company. In 2023, a student was seen threatening a teacher with a slipper in one of the live sessions during an online course. A video was also uploaded in the same year of a staff member pushing a student at one of the company’s offline centres. This employee was dismissed after an in-house investigation.

Another disturbing case was in 2024, when a ceiling fan hit a student at a New Delhi facility. A company employee was sued and faced an FIR on grounds of negligence, which was subsequently settled. PhysicsWallah advised investors that their reputation and brand image would be doubted if they fail to protect student safety, given that many of their services are being transferred to the physical learning environment.

Fresh Issue Of ₹3,100 crore And Promoter Share Sale

The IPO will combine both a fresh issue and an offer for sale from the promoters. PhysicsWallah intends to raise ₹3,100 crore with the fresh Issue, while the promoters of the company, Alakh Pandey and Prateek Boob, each holding a 40.35% stake, will sell shares worth ₹360 crore, each contributing ₹720 crore from the offer for sale.

Financial Metrics On The Rise

With the backing of esteemed investors WestBridge Capital, Hornbill, and GSV Ventures, PhysicsWallah has experienced notable gains in its financials. The company reported revenue of ₹2,887 crores in FY25, up significantly from ₹1,941 crores in FY24, and losses have been curtailed considerably, with net loss narrowing to ₹243 crore in FY25, down from ₹1,131 crore in FY24.

Balancing Growth Against Responsibility

The disclosures in the DRHP show both sides of the PhysicsWallah story, the rate of growth that a homegrown edtech success can achieve and the real difficulties of protecting students and operating safely and soundly at scale. As it goes into its IPO, PhysicsWallah will need to convince potential investors that it can balance investment for growth with its responsibility of protecting its students online and offline.

Outlook

PhysicsWallah’s IPO demonstrated growth and increased scrutiny. Investors are cautious about the edtech sector, and detailed disclosures regarding health and safety show the difficulties of operations. How to scale up safely and responsibly, while also supporting learners safely, will be the main focus for sustaining investor confidence and long-term growth.

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