PhysicsWallah IPO opens November 11: Issue size, OFS details, fund utilisation plan, and India’s edtech outlook

The company's maiden public offering is scheduled to conclude on November 13, and anchor investors will be allocated shares on November 10, according to the red herring prospectus (RHP) filed on Wednesday.

The upcoming IPO comprises a fresh issue of equity shares worth ₹3,100 crore and an offer for sale (OFS) of shares aggregating up to ₹380 crore by promoters, it showed.

Both promoters, Alakh Pandey and Prateek Boob, will each offload shares worth ₹190 crore through the OFS. At present, both hold a 40.31% stake each in the company.

PhysicsWallah IPO background

Noida-based PhysicsWallah filed draft papers in March with SEBI for an IPO through a confidential pre-filing route and received the market regulator's approval in July. Following this, the company filed an updated DRHP in September before filing an RHP.

The company opted for the confidential pre-filing route, which allowed it to withhold public disclosure of IPO details until later stages.

PhysicsWallah IPO: Fund utilisation

Of the fresh issue proceeds, PhysicsWallah said ₹460.5 crore will be utilised in fit-outs of new offline and hybrid centres, and ₹548.3 crore will be used for lease payments of existing centres.

Additionally, the company will invest ₹47.2 crore in its subsidiary Xylem Learning, including ₹31.6 crore for new centres and ₹15.5 crore for lease payments and hostels.

A further ₹33.7 crore will be directed to Utkarsh Classes & Edutech for lease payments of its centres. Additionally, ₹200.1 crore is earmarked for server and cloud infrastructure, ₹710 crore for marketing initiatives, and ₹26.5 crore for acquiring an additional stake in Utkarsh Classes.

About PhysicsWallah

PhysicsWallah offers test preparation courses for competitive exams focusing on JEE, NEET, GATE, and UPSC, along with upskilling programmes, delivered through online platforms (YouTube, website, and apps), tech-enabled offline centres, and hybrid centres that combine online teaching with in-person support.

Its main YouTube channel, Physics Wallah-Alakh Pandey, had about 13.7 million subscribers as of July 15, 2025, while its overall YouTube network had 98.8 million subscribers by June 30, 2025, growing at a CAGR (compound annual growth rate) of 41.8% between FY23 and FY25.

Apart from its strong digital presence, PhysicsWallah has also built a significant offline footprint.

The company, which is backed by WestBridge Capital, Hornbill, and GSV Ventures, narrowed its losses to ₹243 crore in the year ended March 2025 from ₹1,131 crore in the preceding year. Meanwhile, its revenue rose to ₹2,887 crore, from ₹1,941 crore in the corresponding period of the previous fiscal year.

Kotak Mahindra Capital Company, J.P. Morgan India, Goldman Sachs (India) Securities, and Axis Capital have been roped in by the company to manage its public offering.

About the Edtech industry in India

There has been prominent growth in the ed-tech industry since COVID-19, as the education industry has been negatively impacted during that phase. The need for technological advancement in the existing traditional educational system has contributed to more companies entering this industry with better services. According to the PGA Labs and IVCA report, India's education sector is expected to grow from US$117 billion in 2020 to US$225 billion by 2025, says a report by the India Brand Equity Foundation (IBEF).

The report adds that there is a huge opportunity for India’s edtech industry to grow to around US$10 billion by the year 2025. Numerous factors have been supporting the growth and expansion, such as high penetration of the internet and smart devices, an increase in online content consumption, and the demand for young, skilled professionals in the workforce.

Physics Wallah's competitors

Physics Wallah’s key competitors include leading Indian edtech firms such as Byju’s, Unacademy, and Vedantu, which have a strong presence in both online and hybrid education formats. The company also contends with specialised platforms like Klassroom in hybrid tutoring, Embibe in test preparation, and Aakash Educational Services Limited in the exam preparation segment.