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Edtech giant PhysicsWallah is preparing to launch its initial public offering (IPO) soon. According to market sources, the company is expected to launch its IPO within the next few weeks with a target of raising ₹3,820 crore. This move will make PhysicsWallah the first edtech startup to be listed on the Indian stock market, marking a significant milestone for the country's growing edtech sector.
In this context, a Bloomberg report emphasized that the company has held several meetings with potential investors, indicating that the public offering is imminent.
The main objective of an IPO
PhysicsWallah IPO draft was filed in March 2025, received SEBI approval in July, and an updated draft red herring prospectus (DRHP) was filed in September 2025. The IPO will involve issuing new shares worth ₹3,100 crore, while existing shareholders will sell shares worth ₹720 crore through an offer for sale (OFS). The company's CEOs, Alakh Pandey and Pratik Maheshwari, will also put some of their shares up for sale.
The proceeds from the new shares will be used for various strategic initiatives, including ₹710 crore for marketing, ₹548 crore for lease payments for existing offline and hybrid centers, ₹460 crore for capital expenditure on new centers and ₹471 crore for investment in subsidiary Xylem Learning Private Limited.
According to the current prospectus, Founder Alakh Pandey and Co-Founder Pratik Maheshwari each hold significant stakes in the company at 40.35%. Additionally, major investors such as Westbridge Capital LLP hold 6% and 41%, respectively and Hornbill Capital Partners holds 4.42%. The sale of the OFS stake through an IPO will provide these early investors and founders with a partial exit, while providing the company with the capital needed for further growth.
Continuously Increasing User Count and Financial Growth
PhysicsWallah recorded 4.46 million paid users in FY 2025, representing a compound annual growth rate (CAGR) of 59% between FY2023 and FY2025. This figure underscores the company's strong market position and expanding reach. In September 2024, the company raised $210 million at a valuation of $2.8 billion.
Now, the company is aiming to reach a valuation of approximately $5 billion through its IPO. In fiscal year 2024, PhysicsWallah reported revenue of ₹1,940 crore, although it also incurred a loss of ₹1,130 crore during this period. The capital raised from the IPO will help the company fund its growth plans and continue on the path to profitability.
PhysicsWallah will be the first edtech startup
Physicswala's IPO marks a significant moment for the Indian edtech sector. It will not only open new doors of growth for the company but also pave the way for other edtech startups to enter the public markets.
This IPO will strengthen investor confidence in the Indian startup ecosystem and inspire further innovation and growth in the future. It is also a strong testament to the growing acceptance of online learning in the Indian education system.
