Startup Originals Team
PhysicsWallah, the brainchild of Alakh Pandey, has achieved a historic milestone by receiving approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO). This move marks PhysicsWallah as the first Indian edtech unicorn aiming to enter the public markets, signaling a new chapter in the growth and evolution of the country’s technology-driven education sector.
The SEBI Approval and the Path to IPO:
PhysicsWallah received the regulatory go-ahead in July 2025 after confidentially submitting its draft red herring prospectus (DRHP) in March. Gaining SEBI’s approval through the pre-filing route was a swift process, illustrating both regulatory confidence and strong business fundamentals. The planned IPO seeks to raise approximately ₹4,600 crore (about $533 million) through a mix of fresh share issuance and an offer for sale by existing investors.
Company Valuation and Key Investors:
PhysicsWallah is currently estimated to be valued at $2.8 billion after a substantial funding round in late 2024 led by Hornbill Capital, with participation from marquee investors like Lightspeed Venture Partners, GSV Ventures, and WestBridge Capital. The IPO could push this valuation even higher, potentially reaching ₹40,000 crore ($5 billion), positioning PhysicsWallah as India’s most valuable edtech enterprise.
Governance and Leadership Enhancements:
In preparation for the IPO, PhysicsWallah transitioned into a public limited company and strengthened its corporate governance. The company appointed three independent directors to its board and recently brought in Satish Sharma as its Chief Marketing Officer to power brand positioning and expansion efforts.
Business Model and Growth Strategy:
Founded to make quality education affordable for Indian students, PhysicsWallah offers preparation for competitive exams, K-12 learning, and skill development through both online channels and physical centers. It has expanded aggressively offline, now running over 100 centers across India, with offline revenue projected to top ₹1,000 crore and plans to launch in new cities and regions.
Financial Performance:
PhysicsWallah’s revenue soared by 161% in FY24 to ₹1,940.4 crore, up from ₹744 crore in FY23. However, the company reported a significant net loss of ₹1,131 crore in FY24 due in large part to a non-cash fair value charge linked to preference shares. Excluding this one-time expense, the adjusted net loss stood at ₹375 crore. The company aims to utilize the IPO proceeds to expand operations, invest in artificial intelligence and new technologies, and drive profitability.
Future Outlook
PhysicsWallah is at the forefront of India’s evolving edtech landscape, combining robust digital offerings with an aggressive physical expansion strategy. With IPO proceeds earmarked for business growth, technology enhancements, and international expansion, the company aspires to define the future of accessible and quality education for millions of students-both in India and globally.
PhysicsWallah’s upcoming IPO is more than just a fundraising event; it is a testament to the resilience and maturity of India’s edtech ecosystem. The move is expected to encourage other tech startups to explore public markets and drive innovation in the sector.
