Alakh Pandey-led PhysicsWallah gets SEBI approval for IPO

Alakh Pandey-led edtech unicorn PhysicsWallah has secured approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO), marking a pivotal moment for India’s technology-driven education sector.

The regulatory green light follows the company’s confidential draft filing with SEBI in March, and places PhysicsWallah among a new cohort of tech firms preparing to tap public markets in 2025.

The proposed IPO, expected to raise approximately Rs 4,600 crore, will include a mix of primary share issuance and an offer for sale from existing investors.

PhysicsWallah, backed by marquee investors such as Lightspeed Venture Partners, WestBridge Capital, Hornbill Capital, and GSV Ventures, currently commands an estimated valuation of $2.8 billion. It is poised to become the first Indian edtech unicorn to go public with an estimated valuation of about Rs 40,000 crore.

In preparation for its market debut, the company has taken several steps to align with public company norms. Earlier this year, it converted into a public limited entity and appointed three independent directors to its board, reinforcing governance structures. In June, it brought on Satish Sharma as chief marketing officer to sharpen its brand positioning and expansion strategy.

Founded by Alakh Pandey, PhysicsWallah rose to prominence by offering affordable test preparation and K-12 education content through a combination of online platforms and offline centers.

While much of India’s edtech sector has been battered by waning investor interest and hybrid learning fatigue, PhysicsWallah has doubled down on physical expansion. The company expects to generate over Rs 1,000 crore in revenue from its offline operations alone, with plans to open new centers in both existing and untapped cities.

While the company has yet to file its FY25 annual statements, it reported revenues of Rs 1,940.4 crore in FY24. However, its net loss stood at Rs 1,131 crore in FY24, widened by a non‑cash fair value charge on CCPS. Excluding this one-time item, the adjusted net loss was Rs 375 crore.