Physics Wallah IPO Soars, Defying India’s Edtech Slump

The initial public offering for Indian education technology firm Physics Wallah delivered a spectacular debut, with shares surging an impressive 44% above their listing price. This powerful market entry signals a potential resurgence for India’s edtech industry, which has faced significant challenges in recent years. The company’s stock, initially priced at ₹109, reached an intraday peak of ₹161.99 before settling at ₹156.49, establishing a market valuation of approximately ₹448 billion ($5 billion). This figure substantially outpaces both its listing valuation of ₹315 billion ($3.6 billion) and its final private valuation of $2.8 billion from September 2024.

Through its public offering, Physics Wallah successfully raised ₹34.8 billion ($393 million). The majority of this capital, ₹31 billion ($350.1 million), came from newly issued shares, while co-founders Alakh Pandey and Prateek Boob sold shares worth ₹3.8 billion ($42.9 million). Before the listing, these founders collectively controlled about 80% of the company. This successful market debut underscores the organization’s extraordinary growth trajectory, which began modestly in 2016 as a YouTube channel operated by Pandey. Today, the company distinguishes itself in a sector where many competitors are struggling with workforce reductions, scarce funding, and operational difficulties.

The contrast with other major players in the industry is striking. Byju’s, previously India’s most valuable startup with a $22 billion valuation, now confronts a perfect storm of corporate governance issues, legal disputes with creditors, and a severe liquidity crisis that has triggered widespread job cuts. The Bengaluru-based company is currently navigating insolvency proceedings in both Indian and American courts. Similarly, another prominent edtech platform, Unacademy, has dramatically scaled back its operations and reduced staffing levels. Recent reports indicate discussions about a potential acquisition by upskilling platform UpGrad for between $300 and $400 million, representing a substantial devaluation from its $3.44 billion valuation in 2021.

For the financial year 2025, Physics Wallah reported robust performance metrics. Revenue climbed 49% year-over-year to reach ₹28.9 billion ($326 million), while the net loss contracted significantly to ₹2.4 billion ($27.5 million) from ₹11.31 billion ($127.7 million) in the previous period. The revenue distribution shows a nearly even split between digital and physical channels, with online platforms contributing 48.6% of operating revenue and offline centers accounting for 46.8%. The company also revealed it serves 4.5 million paying subscribers, marking a 23% increase compared to the prior year.

During the IPO ceremony held in Mumbai, Pandey described the public listing as “a good milestone” while emphasizing that “the mission and vision are a lot to be left to be completed.” The company intends to allocate the majority of IPO proceeds toward expanding its network of physical centers, enhancing its technological infrastructure, and pursuing strategic acquisition opportunities. This expansion strategy is already well underway, with the company operating 303 centers across 152 cities in India and the Middle East as of June 2025, a notable increase from the 182 centers reported just one year earlier.

(Source: TechCrunch)