PhysicsWallah rolls back lending plans, shifts student financing to NBFC partners
- ByStartupStory | June 8, 2026
Edtech major PhysicsWallah (PW) has revised its student lending strategy and will now partner with regulated non-banking financial companies (NBFCs) instead of pursuing direct lending through its wholly-owned subsidiary FinZ Finance.
The development comes shortly after the company announced an investment of around Rs 120 crore in FinZ Finance, a move that had triggered criticism from some stakeholders who felt the company should focus on its core education business rather than lending.
In a press release issued on Thursday, PW said it has tied up with multiple regulated third-party NBFCs to cater to the financing needs of students. The company added that the revised approach would materially reduce balance sheet and credit-related risks.
Going forward, PhysicsWallah said it will continue to function as a technology platform that connects students with lending partners based on their learning journey and academic outcomes. The company believes the model will help improve the affordability and accessibility of education while making the offering more scalable.
The company also indicated that the future direction of FinZ Finance is yet to be decided and will be subject to board and regulatory approvals.
Explaining the decision, co-founder Prateek Maheshwari said the company received feedback from partners that its strengths lie in building communities and operating its education business, while lending is better handled by regulated financial institutions with established underwriting capabilities.
Maheshwari added that prudent capital allocation and shareholder value remain a priority for the company, and that the revised strategy reflects feedback received following the earlier announcement.
The company also reported strong financial performance for the quarter ended March 2026, with revenue rising 51% year-on-year to Rs 919 crore, while its losses narrowed 76% to Rs 69 crore. Notably, after the company announced the revised strategy, its shares gained nearly 10% on the stock exchanges.
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