PhysicsWallah to raise ₹3,820 cr via IPO; set to become India’s most valuable listed edtech

PhysicsWallah, known for its test preparation programmes for JEE, NEET, GATE, and UPSC, has filed its Updated Draft Red Herring Prospectus (UDRHP) with the Securities and Exchange Board of India (Sebi), and is looking to raise ₹3,820 crore through its initial public offering (IPO). With this, the edtech unicorn is set to become India’s most valuable listed edtech company with a valuation of around $4 billion.

The IPO, comprising both a fresh issue of shares and an offer for sale by co-founders Alakh Pandey and Prateek Maheshwari, comes at a time when investor confidence in the edtech sector has been severely shaken by the struggles of peers such as SoftBank-backed Unacademy, Tiger Global-backed Vedantu, and Byju Raveendran’s Byju’s.

PhysicsWallah IPO comprises a fresh issue of equity shares worth ₹3,100 crore and an offer for sale (OFS) by existing shareholders totaling ₹720 crore. The company had received Sebi’s nod for pre-filing in July, after initially submitting its draft papers in March through the regulator’s confidential pre-filing route.

According to the URDHP, the Alakh Pandey-led company, backed by WestBridge Capital, GSV Ventures, Lightspeed Venture Partners, and Hornbill Capital, plans to use the proceeds from the fresh issue to expand its business. Around ₹710 crore has been earmarked for marketing initiatives, ₹548 crore for lease payments of its existing offline and hybrid centres, ₹460 crore for capital expenditure on new centre fit-outs, and ₹471 crore for investment in its subsidiary, Xylem Learning Pvt. Ltd.

According to the latest shareholding pattern available in the IPO document, the promoters currently hold 82.3% stake in PhysicsWallah, with co-founders Alakh Pandey and Prateek Maheshwari (listed as Prateek Boob in official filings) owning 40.35% each, while the remaining 17.7% is held by public shareholders.

Founded in 2016 as a YouTube channel by Alakh Pandey, PhysicsWallah evolved into a full-fledged edtech company in 2020 when co-founder Prateek Maheshwari joined the venture. The company is currently valued at $3.7 billion, according to Tracxn data.

In September 2024, PhysicsWallah raised $210 million in a Series B round at a $2.8 billion valuation, led by Hornbill Capital with participation from Lightspeed Venture Partners, GSV Ventures, and WestBridge Capital. In total, the firm has secured $312 million across two funding rounds, the first being $102 million in June 2022. Its eight institutional investors include WestBridge Capital, Hornbill Capital, and Lightspeed, with WestBridge holding the largest stake. Rajat Pandey remains its only angel investor.

On the financial front, the edtech unicorn posted consolidated revenue of over ₹2,000 crore in FY24, with standalone revenue crossing ₹1,600 crore. Its revenue mix reflected a 55:45 split between online and offline offerings.

Recently, PhysicsWallah acquired a 40% stake in UPSC mentorship platform Sarrthi IAS, valuing the company at around ₹250 crore. Under the partnership, Sarrthi IAS will retain its operational independence while tapping into PhysicsWallah’s technological capabilities and extensive resources.

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