PhysicsWallah takes confidential route to raise ₹4,600 cr via IPO

In a fresh development in the primary market, PhysicsWallah (PW), a homegrown edtech company, has pre-filed its draft red herring prospectus (DRHP) with the capital market regulator SEBI through the confidential route. This is the seventh company taking confidential pre-filing route to list its shares on the stock exchanges after Tata Play, Oyo, Swiggy, Vishal Mega Mart, Credila Financial Services and Indira IVF.

The founder and CEO Alakh Pandey-led edtech unicorn looks to raise ₹4,600 crore via IPO, which is expected to be a mixture of fresh issue of equity shares and an offer for sale (OFS) by existing shareholders.

SEBI introduced the concept of confidential filings in November 2022, allowing companies to submit their IPO documents privately, protecting sensitive business information from competitors until they are ready to publicly announce their listing plans. Tata Play, previously known as Tata Sky, was the first company in India to take a confidential pre-filing route for its IPO. Last year, some big-ticket IPOs such as Swiggy and Vishal Mega Mart took confidential pre-filing route to list their shares on the domestic bourses. Recently, Credila Financial Services Limited (formerly known as HDFC Credila Financial Services Limited) also submitted its confidential IPO papers in December 2024.

Alakh Pandey’ PhysicsWallah valued at $3.7 bn 

PhysicsWallah was founded in2016 as a YouTube channel by Alakh Pandey, later established an ed-tech company with a focus on affordable education, and co-founded with Prateek Maheshwari in 2020. It is currently valued at $3.7 billion as per tracxn latest data.

In September 2024, PW raised $210 million in a Series B funding round at a valuation of $2.8 billion, led by Hornbill Capital, with participation from Lightspeed Venture Partners, as well as existing investors GSV Ventures and WestBridge Capital. Overall, it raised a total of $312 million in 2 rounds, with the first being $102 million in June 2022.

Physics Wallah has 8 institutional investors including WestBridge Capital, Hornbill Capital and Lightspeed Venture Partners. WestBridge Capital is the largest institutional investor in Physics Wallah. Rajat Pandey is only Angel Investor in Physics Wallah, as per tracxn data.

As per the latest shareholding pattern, the founders of PhysicsWallah, Alakh Pandey and Prateek Maheshwari, hold 77.40% stake in the company, funds own 20.47% shares, and ESOP pool stands at 8.60%.

As of January 2025, PhysicsWallah has 11,321 employees, while its total employee count is 36.9% lower than what it was in January 2024. Since its inception, Physics Wallah has made 6 acquisitions, including Xylem Learning and Knowledge Planet in 2023.  

On the earnings front, PW recorded a consolidated revenue of over ₹2,000 crore in FY24, with standalone figures surpassing ₹1,600 crore with the revenue mix reflecting a 55:45 ratio between its online and offline offerings.

Despite setbacks faced by a few prominent players like BYJU’s, PW sustained growth as the number of online learners is growing exponentially in India, particularly on platforms like YouTube. Headquartered in Noida, Uttar Pradesh, PW aims to democratise education through online, offline and hybrid platforms. The platform offers online courses for JEE, NEET, and classes, while it also provides study material for competitive exams, interactive sessions, community forums, and resources that facilitates collaborative learning.