With a strong offline expansion plan and growing revenues, the edtech unicorn prepares to raise INR 3,480 Cr through its IPO this November.
IPO Price Band and Valuation Details
Physics Wallah (PW) has officially announced the price band for its upcoming initial public offering (IPO) at INR 103 to INR 109 per share.
- At the upper end, the IPO will value the company at INR 31,169 Cr (~$3.5 Bn).
- This is a jump from its $2.8 Bn valuation during its last funding round in September 2024.
- The public issue opens on November 11 and closes on November 13, with anchor bidding on November 10.
- The company is expected to list on the stock exchanges on November 18.
Structure of the IPO: Fresh Issue and OFS
The total IPO size is INR 3,480 Cr, split between:
- A fresh issue of INR 3,100 Cr, aimed at funding growth and expansion.
- An offer-for-sale (OFS) component of INR 380 Cr, trimmed down from the earlier planned INR 720 Cr.
- The OFS is entirely by cofounders Alakh Pandey and Prateek Boob, each holding 40.31% stake.
Notably, institutional investors like WestBridge Capital (6.40%), GSV Ventures (2.85%), and Lightspeed (1.79%) are not selling any shares in this offering.
Use of Proceeds: Offline Expansion in Focus
A large portion of the fresh capital will be used to scale Physics Wallah’s offline and hybrid presence.
- Funds will go toward fit-outs, lease payments, and setup costs for newly identified centres.
- The startup aims to accelerate its “Phy-gital” model, combining its digital reach with a rapidly growing offline footprint.
- As of Q1 FY26, PW operated 303 centres, up 68% YoY from 182 centres in Q1 FY25.
Financial Performance Snapshot
Physics Wallah’s financials show strong revenue growth but continued pressure on profitability:
- Q1 FY26 net loss stood at INR 125.5 Cr, up 78% YoY from INR 70.6 Cr in Q1 FY25.
- However, revenue grew 33% YoY to INR 847 Cr, up from INR 635.2 Cr.
- In FY25, PW reported a net loss of INR 243.3 Cr, a 78% improvement from FY24.
- Annual revenue from operations for FY25 reached INR 2,886.6 Cr, marking a 49% YoY jump.
IPO Strategy: No Pre-IPO Placement, Investor Confidence High
The company has chosen not to undertake a pre-IPO placement, reflecting confidence in market demand.
- The reduced OFS size signals long-term belief by promoters in PW’s growth trajectory.
- Continued support from key backers like WestBridge, GSV, and Lightspeed, who aren’t exiting, further boosts investor sentiment.
Physics Wallah has set its IPO price band at INR 103–109, targeting a $3.5 Bn valuation. The INR 3,480 Cr issue includes INR 3,100 Cr fresh issue and INR 380 Cr OFS. Funds will fuel offline expansion. Q1 FY26 revenue rose 33% YoY, though net loss widened to INR 125.5 Cr.
