India’s edtech unicorn PhysicsWallah has publicly filed its updated Draft Red Herring Prospectus (DRHP) with SEBI, signaling a formal step toward launching its IPO. The company plans to raise a total of ₹3,820 crore, comprising:
- ₹3,100 crore through a fresh issue of shares, and
- ₹720 crore through an Offer For Sale (OFS) by co-founders Alakh Pandey and Prateek Maheshwari, who will each sell shares worth ₹360 crore.
How Will the Funds Be Used?
PhysicsWallah intends to channel the fresh issue proceeds across vital growth areas:
- ₹460–461 crore for outfitting new offline and hybrid learning centres.
- ₹548 crore for lease payments at existing centres.
- ₹470 crore toward investments in subsidiaries like Xylem Learning and Utkarsh Classes.
- ₹200 crore for enhancing cloud and server infrastructure.
- ₹710 crore allocated for marketing initiatives.
- The remaining funds are earmarked for future acquisitions and general corporate purposes.
Background & Significance
- PhysicsWallah became the first edtech firm to receive SEBI’s nod for an IPO in July 2025, marking a pioneer moment for the sector. The Economic Times
- The earlier confidential pre-IPO filing was approved by SEBI, setting the stage for a public IPO process.
IPO Snapshot
| Item | Details |
|---|---|
| Total IPO Size | ₹3,820 crore |
| Fresh Issue | ₹3,100 crore |
| OFS by Founders | ₹720 crore (₹360 crore each) |
| Key Use of Proceeds | Offline & hybrid centre setup, lease payments, subsidiary investments, infra, marketing |
| SEBI Status | Updated DRHP filed publicly following pre-filing approval |
Why It Matters
- Edtech Milestone: PhysicsWallah’s IPO could become the first public listing from India’s edtech ecosystem, setting a benchmark for similar startups.
- Expansion Strategy: Funding reflects a strategic push toward expanding physical presence and scaling operations.
- Investor Confidence Booster: A successful IPO may validate business models in hybrid education, especially amid tighter private funding scenarios.
