PhysicsWallah files updated DRHP for Rs 3,820-crore IPO; Alakh Pandey to sell shares worth Rs 360 crore

Noida-based edtech unicorn PhysicsWallah has filed its updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise up to Rs 3,820 crore.

Advertisment

The share sale will comprise a fresh issue of Rs 3,100 crore and an offer for sale of Rs 720 crore by its co-founders, Alakh Pandey and Prateek Boob.

The filing follows SEBI’s clearance of the company’s pre-filed draft prospectus in July under the confidential review route, which allows regulatory vetting before public disclosure. If completed, the listing would make PhysicsWallah India’s first edtech unicorn to hit Dalal Street.

According to the prospectus, the proceeds from the fresh issue will be deployed across expansion and infrastructure. About Rs 460.6 crore has been earmarked for fit-outs of new offline and hybrid centers, while Rs 548.3 crore will go toward lease payments of existing centers. Investments include Rs 47.2 crore in subsidiary Xylem Learning and Rs 33.7 crore in Utkarsh Classes & Edutech, along with Rs 26.5 crore for acquiring additional shareholding in Utkarsh.

The Alakh Pandey-founded company also plans to allocate Rs 200.1 crore for server and cloud infrastructure, and Rs 710 crore for marketing initiatives. The remaining funds will be used for acquisitions and general corporate purposes.

Notably, promoters Pandey and Boob currently hold 40.35% each, with overall promoter ownership at 82.3%. Among institutional investors, WestBridge AIF I is the largest shareholder with 6.41%, followed by Hornbill Capital (4.42%), GSV Ventures’ Fund III (2.85%), Lightspeed Opportunity Fund (1.79%) and Setu AIF Trust (1.39%).

PhysicsWallah, founded in 2016, has built a large user base in test preparation for exams such as JEE, NEET, GATE and UPSC, while also expanding into upskilling and hybrid learning. The platform counted 44.6 lakh paid users in FY25, growing at a compounded rate of 59% between FY23 and FY25.

Financially, the company narrowed its net loss to Rs 243.2 crore in FY25 from Rs 1,131.1 crore the year before, while revenue rose 48.7% to Rs 2,886.6 crore.

The IPO is being managed by Kotak Mahindra Capital Company, JP Morgan India, Goldman Sachs (India) Securities, and Axis Capital. The company last raised $210 million in September 2024 at a $2.8 billion valuation and is now reportedly seeking to nearly double that to around $5 billion through the offering.