Edtech unicorn PhysicsWallah has submitted updated draft documents to market regulator SEBI to raise ₹3,820 crore through an initial public offering (IPO) aimed at expansion and growth.
The IPO will consist of a fresh equity issue of ₹3,100 crore and an offer for sale (OFS) of ₹720 crore by the promoters, according to the updated draft red herring prospectus (UDRHP) filed on Saturday. Both co-founders, Alakh Pandey and Prateek Boob, plan to sell shares worth ₹360 crore each through the OFS. Currently, they each hold a 40.35% stake in the company.
PhysicsWallah had earlier filed draft papers in March 2025 through SEBI’s confidential pre-filing route and received approval in July. Companies using this route are required to file an updated DRHP before the final RHP submission. The confidential process also allows them to delay public disclosure of IPO details until later stages.
From the fresh issue proceeds, PhysicsWallah plans to allocate:
- ₹460.5 crore for setting up new offline and hybrid learning centres,
- ₹548.3 crore for lease payments of existing centres,
- ₹47.2 crore for investment in subsidiary Xylem Learning (₹31.6 crore for new centres and ₹15.5 crore for leases and hostels),
- ₹33.7 crore towards lease payments for Utkarsh Classes & Edutech,
- ₹200.1 crore for server and cloud infrastructure,
- ₹710 crore for marketing initiatives, and
- ₹26.5 crore for acquiring an additional stake in Utkarsh Classes.
Founded in Noida, PhysicsWallah offers test preparation courses for JEE, NEET, GATE, and UPSC, along with various upskilling programmes. Its courses are delivered through online platforms (YouTube, website, and apps), tech-enabled offline centres, and hybrid models combining online and in-person learning.
The company’s primary YouTube channel, Physics Wallah – Alakh Pandey, had 13.7 million subscribers as of July 15, 2025, while its wider YouTube network reached 98.8 million subscribers by June 30, 2025, growing at a 41.8% CAGR between FY23 and FY25. Alongside this digital dominance, the company has expanded its offline presence significantly.
Backed by investors WestBridge Capital, Hornbill, and GSV Ventures, PhysicsWallah has improved its financial performance—reducing losses to ₹243 crore in FY25, compared with ₹1,131 crore in FY24. Revenue rose sharply to ₹2,887 crore, up from ₹1,941 crore in the previous year.
To manage the IPO, the company has appointed Kotak Mahindra Capital Company, JP Morgan India, Goldman Sachs (India) Securities, and Axis Capital.