Edtech unicorn PhysicsWallah is going public via a Rs 3,480 crore initial public offering, in what will be a milestone of sorts for the company that had begun life as a YouTube channel back in 2014.
Prayagraj-born Alakh Pandey had started the YouTube channel targeting those who wanted to take the IIT and medical entrance exams, but couldn’t afford expensive coaching.
Over time, PhysicsWallah has expanded with an app that was launched in 2020, and it now offers test preparation courses for multiple competitive exams, including UPSC, government exams, upskilling courses, and coaching for school students, among various initiatives.
The edtech company also has close to 200 YouTube channels and over 200 physical centres across the country now.
“PW is an education brand, under that we run multiple brands where we prepare students for IIT entrance, MBA entrance and like that we now prepare students for some 38 exams. We also teach class 9-10 and class 6-8 students. So, it’s no more just a test-prep company, but a complete education company,” explained founder Alakh Pandey.
Its app has had close to 65 million downloads. However, the company has been able to monetise only 7 per cent (4.46 million) of its total app downloads so far.
It has recently launched its own OTT platform, where it will offer affordable learning courses. Pandey points out that free social media and streaming platforms like YouTube have a lot of distractions in the form of advertisements, other videos and notifications and its own platform will offer an ad-free alternative.
The platform should also help the company gain more paid users.
“Our paid users have also been continuously growing. But there is a lot of headroom. That is why we have launched Pi (the OTT platform). Also, we will offer more affordability, at Rs 300 per month pricing,” stated co-founder Prateek Maheshwari.
Maheshwari had joined the company in 2020 and helped in building the company’s tech focus, including the app. PhysicsWallah has seen strong growth in the last few years, with a paid user base touching 4.46 million in the financial year ended March 2025, a 59 per cent compounded annual growth over financial years 2023 and 2025. Its 207 YouTube channels have 98.80 million subscribers, growing at over 41.80 per cent between financial year 2023 and 2025.
The company has also been focusing heavily on Artificial Intelligence, which has helped in creating tools as well as a personalised tutor that answers questions students have.
In the financial year ended March 2025, PhysicsWallah reported a revenue of Rs 2,886 crore, up from Rs 1,940 crore in the previous year. Its losses have come down sharply to Rs 243 crore from Rs 1,131 crore.
PhysicsWallah’s growth is in sharp contrast to the troubles faced by Byju’s, which was not so long ago among the leaders in the edtech space. Byju’s has been facing bankruptcy proceedings in the US and had earlier this year reportedly sold its US subsidiaries at a steep discount.
What clicked for PhysicsWallah
PhysicsWallah’s biggest USP has been affordability. It has, for long, provided courses for competitive exams priced between Rs 4,000 and Rs 6,000. But the company founders also stress the quality of their teaching and teachers.
“Affordability is a choice, of course, it’s a catalyst in the journey. But the quality of our education and word of mouth has been a major driver. A student will only give time if he finds there is quality in teaching and sees outcomes. He is not going to start learning on our platform just because it is cheap,” Maheshwari said.
Over time, the company has launched multiple paid options like Power Batch, live online personalised classes, and Curious Junior, online tuition classes for kids in class 1-8.
India’s ed-tech market was valued at around $7.5 billion in 2024 and is projected to touch $29 billion by 2030, according to a report released earlier this year by the Internet and Mobile Association of India (IAMAI) and Grant Thornton.
PhysicsWallah IPO details
PhysicsWallah IPO includes a fresh issue of Rs 3,100 crore and an offer for sale worth Rs 380 crore. The price band for the offer has been set at Rs 103-109. The offer will propel the co-founders, Pandey and Prateek Maheshwari, into the billionaire ranks.
At the upper end of the price band, PhysicsWallah is valued at Rs 31,170 crore. The co-founders hold 105.12 crore shares or around 40.31 per cent stake each, and at the upper end of the band, their stakes will be individually valued at around Rs 11,458 crore.
“PhysicsWallah has empowered millions through affordable, personalised and high-quality education. It reaches metros, tier II and III cities and deep rural pockets, making quality education accessible to every aspiring student and bridging the education divide,” said V. Jayasankar, head of investment banking at Kotak.
Kotak Mahindra Capital, JP Morgan, Goldman Sachs and Axis Capital are the book-running lead managers to the issue. The issue opens for subscription on November 11 and closes on November 13.
The proceeds from the fresh issue of shares will be utilised towards capital expenditure for fit-outs of new offline and hybrid centres, investments in its subsidiaries, funding inorganic growth and expenditure towards cloud-related infrastructure assets, PhysicsWallah said.
The company’s other shareholders include WestBridge Capital, Hornbill Capital Partners, GSV Ventures Fund, among others.
