Edtech

PhysicsWallah Transitions to Public Company Ahead of 2025 IPO

• ByStartupStory     |    December 20, 2024

Edtech giant PhysicsWallah is set to transition into a public company as it prepares for an Initial Public Offering (IPO) in 2025. Earlier this month, the company’s board approved a resolution to change its status from a private to a public entity, renaming itself from “PhysicsWallah Private Limited” to “PhysicsWallah Limited.” The company has announced plans to list its equity shares on one or more stock exchanges.

In a regulatory filing, PhysicsWallah stated, “…the board of directors of the company be and is hereby accorded to change the name of the company from “PHYSICSWALLAH PRIVATE LIMITED” to “PHYSICSWALLAH LIMITED” by deletion of the word “Private” before the word “Limited” in the name of the company and accordingly amend the name clause of the Memorandum of Association of the company and all such other papers, documents and matters be made to give effect of the changed name accordingly.”

Founded in 2020 by Alakh Pandey and Prateek Maheshwari, PhysicsWallah has rapidly expanded its footprint, currently operating offline and hybrid centres across more than 105 cities in India. The company offers a wide range of educational services, including Gurukulam Schools, test preparation in 43 categories, and a skilling vertical, as well as higher education and study abroad programs.

PhysicsWallah has also made significant strides in online education, claiming to provide free education to over 4.6 crore students through its 112 YouTube channels in five vernacular languages.

The company’s path to public markets comes after securing a significant funding boost. In September 2024, PhysicsWallah raised $210 million in a Series B round, led by Hornbill Capital, at a valuation of $2.8 billion. Other investors included Lightspeed Venture Partners, GSV Venture, and WestBridge Capital. This funding round is seen as pivotal in the company’s growth, following its unicorn status in 2022 after a $100 million investment.

Despite the strong growth, PhysicsWallah faced challenges in its financials. For the fiscal year ending March 2024 (FY24), the company’s net loss surged to INR 1,131.2 crore, a significant jump from INR 84.06 crore in FY23. However, operating revenue saw a 2.6-fold increase, reaching INR 1,940.4 crore in FY24, compared to INR 744.3 crore in the previous year.

The company has also lined up high-profile bankers for its proposed IPO, with Axis Capital, Kotak Mahindra Capital, Goldman Sachs, and JP Morgan taking the lead. The IPO, expected to raise between $400 million to $500 million, is seen as a critical step in PhysicsWallah’s growth as it looks to further its mission of providing affordable and accessible education to millions of students.

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