PhysicsWallah Files for ₹3,820 Crore IPO: A Game-Changer in Indian EdTech

PhysicsWallah, India’s prominent edtech platform, has submitted an updated Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI), aiming to raise ₹3,820 crore through its Initial Public Offering (IPO). This move marks a significant milestone in the company’s journey, reflecting its growth and the increasing investor interest in the edtech sector.

IPO Structure and Stakeholder Involvement

The proposed IPO comprises a fresh issue of ₹3,100 crore and an offer-for-sale (OFS) component of ₹720 crore. Founders Alakh Pandey and Prateek Maheshwari plan to sell shares worth ₹360 crore each, reducing their combined stake from 80.7% to 60.7%. This strategic move aims to provide liquidity and broaden the company’s shareholder base.

Utilization of Funds

The funds raised through the IPO are earmarked for various growth initiatives:

• Infrastructure Development: Approximately ₹460.5 crore will be allocated for setting up new offline and hybrid learning centers, while ₹548.3 crore will cover lease obligations for existing centers.
• Technology and Marketing: ₹200.1 crore is designated for enhancing cloud and server infrastructure, and ₹710 crore will be invested in promotional activities to expand the company’s reach.
• Strategic Investments: ₹47.2 crore will be invested in subsidiary Xylem Learning, and ₹26.5 crore will be used to increase the company’s stake in Utkarsh Classes.

Market Position and Growth Trajectory

Founded in 2019 by Alakh Pandey and Prateek Maheshwari, PhysicsWallah has rapidly expanded its presence in the edtech sector. The company offers a range of test preparation and upskilling programs, catering to students across India. As of mid-2025, its flagship YouTube channel, “Physics Wallah-Alakh Pandey,” boasts 13.7 million subscribers, with the broader network reaching nearly 99 million subscribers. This growth underscores the company’s strong brand presence and the increasing demand for quality online education.

Investor Sentiment and Market Outlook

The edtech sector in India has witnessed significant growth, driven by the increasing adoption of online learning platforms. PhysicsWallah’s IPO is expected to attract considerable investor interest, reflecting confidence in the company’s business model and growth prospects. The successful listing of PhysicsWallah could pave the way for other edtech firms to consider public offerings, further fueling the sector’s expansion.

Conclusion

PhysicsWallah’s filing for a ₹3,820 crore IPO signifies a pivotal moment in the Indian edtech landscape. With strategic investments in infrastructure, technology, and marketing, the company is poised to strengthen its position in the market. As the edtech sector continues to evolve, PhysicsWallah’s public debut will be closely watched by investors and industry stakeholders alike.