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Lightspeed Opportunity Fund II LP sold 4,66,98,120 equity shares of PhysicsWallah. These shares represented around 1.61 percent of the Noida-based company’s total paid-up equity. The shares were sold at ₹117.72 per share, taking the total deal value to ₹549.73 crore.
Several domestic and foreign institutional investors bought shares in the block deal. ICICI Prudential Mutual Fund emerged as the largest buyer, purchasing 2.20 crore shares for around ₹258.98 crore. Five entities of Goldman Sachs together bought 89.67 lakh shares worth approximately ₹105.56 crore.
Institutional Investors Increase Stake in PhysicsWallah
Tata AIA Life Insurance Company purchased 33.97 lakh shares worth around ₹40 crore in the block deal. Other buyers included Morgan Stanley Asia Singapore, Societe Generale, Citigroup Global Markets Mauritius, Viridian Asia Opportunities Master Fund, Safra Sarasin Fund Management, Ghisallo Master Fund, Mediolanum International Funds, New York State Teachers Retirement System and OP-India Fund.
Lightspeed’s exit comes at a time when PhysicsWallah is expanding its online and offline education businesses while showing improvement in its financial performance. The company reported revenue from operations of ₹1,053.95 crore for the June 2026 quarter, up 24.4 percent from ₹847.09 crore in the same quarter a year earlier.
PhysicsWallah’s net loss narrowed to ₹88.28 crore in the June quarter from ₹127 crore in the corresponding quarter last year. During the quarter, the company also reported a positive EBITDA of ₹52 crore, with an EBITDA margin of 4.9 percent.
Online and Offline Learning Driving Growth
PhysicsWallah is among the companies in India’s EdTech sector combining online education with offline coaching. The company provides digital content, classroom programmes and other learning services for various educational needs, including competitive exam preparation.
The company’s recent financial performance indicates that its losses have declined alongside revenue growth. While PhysicsWallah continues to report a net loss, its positive EBITDA and growing operating revenue indicate an improvement in the overall performance of the business.
Shift in Investor Strategy
Lightspeed’s exit from PhysicsWallah comes amid a broader trend of early-stage investors selling their stakes and realising returns in India’s EdTech sector. At the same time, participation by major institutional investors in the block deal indicates that institutional interest in PhysicsWallah remains strong.
PhysicsWallah shares witnessed heavy trading following the block deal. According to a Moneycontrol report, the shares rose around 3.94 percent to ₹126.13 on August 26. Other market reports also indicated gains of around 5 percent during early trading.
Challenges Ahead for PhysicsWallah
Going forward, PhysicsWallah’s key priorities will include expanding its online and offline learning businesses, sustaining revenue growth and improving profitability. While the latest quarterly figures show positive changes in revenue and EBITDA, costs and the continuing net loss remain key challenges for the company.
Following Lightspeed’s complete stake sale, the ownership of PhysicsWallah has shifted toward new institutional investors. Market attention will therefore remain on the company’s future performance, particularly as sustainable financial performance becomes increasingly important alongside scale in India’s EdTech sector.
