One of India’s leading Edtech unicorns, PhysicsWallah, will launch a massive initial public offering of around ₹3,820 crore in the upcoming month. PhysicsWallah will be selling a total of 3,100 crore in fresh mattering, and an additional issue of sale by existing shareholders, for a total of ₹720 crore. The current shareholders of the company are the long-time supporter WestBridge Capital LLP and specialist investor Hornbill Capital Partners. PhysicsWallah has already briefed potential investors, and the offering is expected to launch in a few weeks.
Twenty-Four Seven, an edtech platform founded by Alakh Pandey and Prateek Boob, holds a 40.35% stake in the company. WestBridge Capital and Hornbill Capital own 6.41% and 4.42%, respectively. The founders plan to sell shares worth ₹360 crore each through the OFS.
On the other hand, PhysicsWallah will raise ₹250 crore through a fresh share issue. It plans to raise funds on a post-offer basis to help in the following ways. Seven hundred ten crore will go into marketing initiatives, ₹548 crore for lease payments on current offline and hybrid centres, ₹460 crore for capital expenditure on future centres, and ₹471 crore for investing in a subsidiary. PhysicsWallah specialises in offering test preparation and upskilling courses. Unlike the other companies, Seventeen Seven earned ₹1,940 crore from its 44.6 lakh paid users in FY25. However, the company suffered a loss of about ₹1,130 crore in FY24. The offering, which is anticipated to value the company at nearly $5 billion, comes less than a year after PhysicsWallah highlighted a market capitalisation of $2.8 billion in September 2024 following a capital raising that yielded $210 million. The firm has hired Kotak Mahindra Capital, Axis Bank Ltd, JPMorgan Chase and Goldman Sachs to advise on the listing, according to the sources. The PhysicsWallah IPO is likely to be one of the biggest in India’s burgeoning IPO market, as well as in the edtech and education technology sectors, with a large user base and growing investor interest.