PhysicsWallah IPO: Decoding the Edtech Unicorn’s Public Debut

New Delhi, November 11, 2025: In a significant move poised to reshape India’s burgeoning education technology landscape, Edtech unicorn PhysicsWallah (PW) is launching its Initial Public Offering (IPO). This public offering marks a key milestone, particularly as PW becomes the first major Indian edtech player to list on the public markets following a period of correction in the sector.

Here is a detailed breakdown of the PhysicsWallah IPO, its financials, and its strategic significance.

Key IPO Details at a Glance

Aspect	Details
IPO Open Date	November 11, 2025
IPO Close Date	November 13, 2025
Total Issue Size	₹3,480 Crore (Approximately)
Price Band	₹103 to ₹109 per equity share
Issue Structure	Fresh Issue (₹3,100 Cr) + Offer for Sale (OFS) (₹380 Cr)
Listing Exchanges	BSE and NSE
Tentative Listing Date	November 18, 2025
Post-Money Valuation	Approximately ₹31,500 Crore (at upper price band)

The issue is primarily a Fresh Issue of shares, meaning the bulk of the money raised will flow directly into the company’s coffers to fund its ambitious expansion plans. The Offer for Sale (OFS) component, where co-founders Alakh Pandey and Prateek Maheshwari will offload a minority stake, has been consciously reduced to ensure that around 90% of the capital raised is primary in nature.

Business Model: From YouTube to Hybrid Powerhouse

PhysicsWallah started its journey in 2016 as a free YouTube channel, leveraging the power of affordable and accessible video content to reach millions of students. It has since evolved into a full-stack educational platform with a hybrid strategy, offering:

• Online Courses: High-quality, low-cost courses for competitive exams like JEE (Engineering), NEET (Medical), and UPSC, delivered through its app and website. PW’s flagship courses are priced at a fraction of what competitors charge, a strategy that has fuelled its rapid user acquisition.
• Offline Centres (Vidyapeeth): Traditional, dedicated physical coaching institutes.
• Hybrid Centres (Pathshala): Tech-enabled centers where students can watch live online lectures but also receive in-person doubt-solving and support from tutors.

This blend of digital reach and physical presence has allowed PW to penetrate deeper into Tier 2 and Tier 3 cities, tapping into a large, aspirational student population. The company’s continued focus on offline expansion is evident in its goal to increase its current network of approximately 300 centres to 500 in the next three years.

Use of IPO Proceeds: Fueling the Hybrid Future

The substantial fresh capital of ₹3,100 crore is earmarked for strategic growth initiatives:

1. Offline Expansion: A significant portion of the capital will be used for fit-outs of new offline and hybrid centres (approximately ₹461 crore).
2. Lease Obligations: A considerable sum is allocated for meeting lease payments for existing and new centres (over ₹548 crore).
3. Marketing Initiatives: A large expense is budgeted for marketing to further bolster brand presence and student acquisition (approximately ₹710 crore).
4. Technology Investment: Funding for server and cloud infrastructure to maintain and scale its tech platform (over ₹200 crore).
5. Subsidiary Investment: Investing in acquired entities like Xylem Learning and Utkarsh Classes to consolidate its position in regional and specific exam markets.

Financial Health and Valuation Dynamics

PhysicsWallah has demonstrated a phenomenal growth trajectory in its operating revenue, showcasing its ability to monetise its large user base:

Particulars	FY23 (₹ Cr)	FY24 (₹ Cr)	FY25 (₹ Cr)
Revenue from Operations	744	1,941	2,887
Profit / (Loss) for the Year	(84)	(1,131)	(243)

• Revenue Growth: Operating revenue has compounded at a massive CAGR of nearly 97% between FY23 and FY25, showcasing hyper-growth, particularly in the offline segment.
• Losses: While the company has seen explosive revenue growth, it continues to report losses. However, its net loss has narrowed sharply in FY25 compared to FY24, suggesting improving operational efficiency despite aggressive expansion costs.
• Offline Contribution: Revenue is almost evenly split between online and offline operations (approx. 48% online and 52% offline in FY25), highlighting the strength of its high Average Revenue Per User (ARPU) offline model.

The IPO valuation, at the upper end of the price band, is approximately ₹31,500 crore. Given that the company is currently loss-making, the Price-to-Earnings (P/E) ratio is negative. Analysts are therefore looking at the Enterprise Value to Sales (EV/Sales) multiple, which some view as being on the higher side compared to global benchmarks for a growth-stage company.

Conclusion: A High-Growth, High-Risk Proposition

The PhysicsWallah IPO represents a unique investment opportunity in the Indian Edtech sector.

The company’s strengths lie in its deep brand recall, particularly among students in the Hindi-speaking belt, its large and rapidly growing user base (4.46 million paid users in FY25), and a successful low-cost, high-volume hybrid model.

The key risks involve its continued losses, the high initial valuation multiple, intense competition from established coaching institutes (like Aakash and Allen) and other edtech players (like Unacademy), and the execution risk associated with its rapid and capital-intensive offline expansion.

Ultimately, the IPO is viewed as a long-term growth story. While conservative investors may wait for consistent profitability to emerge, the IPO could appeal to well-informed investors betting on the company’s ability to dominate India’s test-preparation and upskilling market through its disruptive hybrid model.