PhysicsWallah (PW), India’s leading edtech platform with over 3.5 crore registered users, has received a Non-Banking Financial Company (NBFC) license from the Reserve Bank of India (RBI) for its wholly-owned subsidiary, PW Fintech Private Limited. The approval, confirmed in September 2025, allows PW to offer student loans, EMI options, and other financial products directly, addressing a key pain point in affordable education amid rising course fees and competition. For students, investors, and fintech observers searching PhysicsWallah NBFC license, PW student loans RBI, or edtech financing 2025, this regulatory greenlight—following a detailed application process—positions PW as a full-stack education provider, potentially disbursing billions in loans to fuel its 1,000 crore+ revenue trajectory.
Founded in 2016 by IITian Alakh Pandey, PW has disrupted coaching with affordable online classes for JEE/NEET aspirants. The NBFC arm, incorporated in 2023, now empowers it to integrate financing seamlessly, reducing dropout rates due to costs.
The NBFC Milestone: From Application to Approval
Securing an NBFC license under Section 45-IA of the RBI Act, 1934, required PW Fintech to meet stringent criteria: a minimum net owned fund of Rs 10 crore, no existing financial activities, and a board with relevant expertise. The process, spanning 180 working days, involved RBI scrutiny of business plans, compliance frameworks, and risk management.
- License Type: Non-Deposit Taking NBFC (NBFC-ND), focusing on lending without public deposits.
- Key Requirements Met: Rs 10 crore+ capital, clean slate (no prior NBFC ops), and directors with banking/fintech experience.
- Timeline: Application in early 2024; in-principle approval mid-2025; full certificate September 2025.
Pandey celebrated on LinkedIn: “This license empowers us to make education truly accessible—no more barriers for deserving students.” It aligns with PW’s mission, serving 78 lakh paid users across 100+ centers.
| NBFC Requirement | PW Fintech Compliance | RBI Mandate |
|---|---|---|
| Net Owned Fund | Rs 10 Cr+ | Minimum Rs 2 Cr (Base) |
| Prior Activity | None | Clean Slate |
| Board Expertise | Fintech/Banking Pros | Required |
| Processing Time | 180 Days | Standard |
Strategic Impact: Financing for Millions of Aspirants
The license unlocks PW’s edtech-fintech synergy, targeting student loans for courses (Rs 5,000-50,000) and devices. With 3.5 crore users (mostly Tier 2/3 cities), it could disburse Rs 1,000-2,000 crore annually, partnering with banks for co-lending.
- Product Rollout: EMI for courses, device financing, and micro-loans by Q4 2025.
- User Reach: 78 lakh paid students; 50% from low-income families needing aid.
- Market Fit: Edtech lending market at Rs 10,000 crore; PW’s scale gives edge over UpGrad/Byju’s.
This follows PW’s Rs 2,000 crore revenue in FY24 (up 200% YoY) and unicorn status at $2.8 billion.
Challenges and Regulatory Guardrails
NBFCs face RBI oversight: Quarterly reporting, KYC compliance, and 50-50 financial activity test. PW must avoid over-lending risks, especially post-Byju’s woes. Experts like those at Secmark note: “The license demands robust governance.”
Conclusion: PW’s Fintech Leap for Inclusive Education
PhysicsWallah’s NBFC license is more than regulatory—it’s a catalyst for democratizing education financing, potentially empowering millions. As PW scales loans, it cements its edtech dominance. For those eyeing student loan trends 2025, this could redefine access. Will it hit Rs 2,000 crore disbursals? The applications are rolling in.
