US-Based Investor Buys 0.37% Stake from 14 Employees at Premium to IPO Price, As PhysicsWallah Eyes Offline Expansion
Pre-IPO Action: Think Investments Picks Up 0.37% in PhysicsWallah
As PhysicsWallah (PW) gears up for its ₹3,480 Cr IPO, US-based investment firm Think Investments has acquired a 0.37% stake in the edtech unicorn for ₹136.17 Cr via a secondary transaction.
- The stake was purchased from 14 PW employees
- Deal involved 1.07 Cr equity shares at ₹127 per share
- Price represents a premium over PW’s IPO price band of ₹103–₹109
The transaction was executed through Think India Opportunities Master Fund LP, as per the share purchase agreement dated November 3, 2025.
IPO Timeline and Valuation
PW’s initial public offering will open for subscription on:
- November 11 (Tuesday) and close on November 13 (Thursday)
- Anchor bidding is set for November 10 (Monday)
- Listing date is expected to be November 18
The IPO will include:
- ₹3,100 Cr fresh issue
- ₹380 Cr offer-for-sale (OFS)
At the upper end of the band, PW is seeking a valuation of ₹31,169 Cr (~$3.5 Bn) — a significant jump from its $2.8 Bn valuation in September 2024.
How the IPO Funds Will Be Used
A large portion of the IPO proceeds will be directed towards expanding PW’s offline and hybrid education centers:
- ₹460.6 Cr: Fit-outs for new centers
- ₹548.3 Cr: Lease payments for existing centers
This offline push follows aggressive growth in FY26, with the company operating 303 centers across six verticals at the end of Q1 — a 68% increase YoY.
Financials: Revenue Grows, Losses Widen
PW’s financial performance has seen top-line growth, but also rising losses:
- Q1 FY26 net loss: ₹125.5 Cr, up 78% YoY from ₹70.6 Cr
- Q1 FY26 revenue: ₹847 Cr, up 33% YoY from ₹635.2 Cr
The company appears to be investing heavily in offline infrastructure, which may be contributing to the widening losses despite growing revenue.
Who Is Think Investments?
Founded in 2013 by Shashin Shah, Think Investments is a $4 Bn tech-focused investment firm with offices in San Francisco and Mumbai.
It has backed several prominent Indian startups, including:
- Swiggy
- FirstCry
- Rapido
- Dream11
- Spinny, Meesho, Urban Company, PharmEasy
The firm’s move to invest in PhysicsWallah just ahead of its IPO underscores its confidence in PW’s long-term growth strategy, particularly in edtech’s blended learning model.
