PhysicsWallah Targets ₹3,820 Crores IPO, Files Draft Red Herring Prospectus With SEBI

New Delhi, September 8, 2025: PhysicsWallah Limited has submitted its updated draft red herring prospectus to SEBI for its ₹3,820 crore IPO, which includes a ₹3,100 crore fresh issue and ₹720 crore through an OFS.

The submission comes as the edtech player looks to raise capital to support its growth plans: scaling offline and hybrid centres, stabilising cloud technology, completing acquisitions, and providing financial support for its subsidiaries (after what has been a significant recovery of the FY25 balance sheet).

Incorporated in 2020, the company started as a digital-first test preparation platform and, since then, diversified into multiple education space categories, most notably JEE, NEET, UPSC, GATE, as well as commerce and skills development. The company has marquee investors, like WestBridge, GSV Ventures and Lightspeed Opportunity Fund.

Offer Mix, Fresh Issue, And Use Of Proceeds

The issue comprises a ₹3,100 crore fresh equity raise and a ₹720 crore OFS by promoters Alakh Pandey and Prateek Boob (₹360 crore each). Use of proceeds is earmarked for the expansion of learning centers, lease and infrastructure payments, tech and cloud upgrades, marketing and inorganic opportunities. Shares are proposed to be listed on the BSE and the NSE.

Strong Financial Performance Returns To Stability

PhysicsWallah has achieved a substantial financial turnaround in FY25 after a challenging FY24. After aggressively scaling up the business, the company began to experience positive momentum by lowering losses considerably. More importantly, PhysicsWallah’s net worth changed from negative the year before to substantially positive strength – mainly through equity infusion and improved operational discipline.

Furthermore, excessive debt, a legitimate concern just under a year prior, was nearly eliminated by the end of FY25, demonstrating PhysicsWallah’s commitment to cleaning up its books to stabilise growth.

IPO Proceeds To Power Expansion, Subsidiary Growth, And Tech Upgrades

PhysicsWallah intends to put a considerable fraction of the IPO proceeds into building its offline and hybrid learning centres. Both increasing the available pool of students in new cities and improving the quality of infrastructure in existing centres.

Another area of focus will be to support subsidiaries such as Xylem Learning and Utkarsh Classes that focus on regional and specialized segments. The company also aims to enhance its technology backbone, specifically its cloud resources, to facilitate learning for students at all levels.

The funds will help finance marketing campaigns to strengthen brand presence and establish headroom for inorganic growth through acquisitions and partnerships, ultimately enabling PhysicsWallah to diversify further into edtech.

Offline Network And Paid Users Demonstrate Multichannel Reach

On March 31, 2025, PW had nearly 200 offline centers in 109 cities and reported 4.46 million paid users. Its subsidiary businesses, Xylem Learning and Utkarsh Classes, also provide in-depth support in key test-prep and skilling categories.

Stock Listing On BSE, NSE Pending

PhysicsWallah is presently unlisted; therefore, no trading data or intraday range will be provided. Stock performance will be reported after the listing date on BSE and NSE, after regulatory approval and final pricing.

REF: https://www.bseindia.com/corporates/download/348820/IPO Prior/PW_UDRHPI_20250906221815.pdf

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