From Chalkboard to Capital Markets: The PhysicsWallah Journey and What Its IPO means for Indian EdTech

Humble Origins, Vision & Functioning

PhysicsWallah (PW) was founded by Alakh Pandey, a humble start from a YouTube channel, as a physics teacher and science enthusiast from Allahabad, in 2014. His approachable teaching style, emphasis on conceptual understanding, and affordable content have quickly earned him massive student loyalty, as evident from the ~14 million subscribers on his main YouTube channel. In 2020, PW was formally incorporated as PhysicsWallah Pvt. Ltd. and later became PhysicsWallah Ltd. The company’s mission has always been to make quality education affordable and accessible to every aspiring student in India, re-emphasising the fact that education should be a right and not a privilege.

PW operates on a hybrid learning model, integrating digital platforms with physical coaching centres under the “PW Vidyapeeth” brand, which operates across multiple cities in India, including Delhi NCR, Kolkata, Kota, Patna, Bareilly, Jaipur, and Ahmedabad. The platform operates through a combination of recorded lectures, live interactive sessions, and offline classroom teaching.

      Expansion of PW Vidyapeeth and Diversification

• PW Vidyapeeth (offline coaching centres) has become the foundation of its rapid growth. Between FY24 and FY25, the number of physical centres grew from 182 to 303. These centres now cater to JEE, NEET, and Board exam aspirants, along with newly introduced streams for UPSC, Gate, and state-level exams. With its own app, website, and offline ecosystem, PW has established a pan-India presence that helps bridge the urban-rural divide in education.

• Recognising the saturation in the engineering (JEE) and medical preparation segments (NEET), PW has expanded into wider exam domains, including defence (NDA, CDS), government jobs (SSC, Banking, Railways), and civil services, encompassing a total of 19 such categories. Additionally, through subsidiaries such as Utkarsh Classes, iNeuron, and Knowledge Planet, PW has expanded into skill-based learning as well. This diversification not only broadens its revenue stream but also positions PW as a comprehensive ‘education conglomerate’ rather than a niche company focused solely on test preparation.

       Recent Financial Performance Snapshot

• According to the Red-Herring-Prospectus (RHP), PW’s revenue from operations surged from Rs. 7,443.18 million (FY23) to Rs. 28,866.43 million (FY25), implying 96.9% CAGR. In particular, revenue from the online channel forms 48.64% of total revenue from operations (Rs. 14,040.50 million) and 46.83% from the offline channel (Rs. 13,518 million) in FY25.

• The total number of paid users reached 4.5 million, with an annual growth rate of 59% from fiscal year 2023 to fiscal year 2025. Despite this, the company is in a loss-making position with a net loss of Rs. 2,432.58 million in FY25. Additionally, employee attrition remains a challenge, at around 30%, indicating pressure on faculty retention.

The IPO Structure and Key Details

• PW’s Initial Public Offering (IPO) is a Rs. 3,480 crore issue comprising a Fresh Issue of Rs. 3,100 crore and an Offer for Sale (OFS) of Rs. 380 crore by the directors and promoters, Alakh Pandey and Prateek Boob.

• The price band is determined by the ‘book-building’ method, set at Rs. 103-Rs. 109 per share

• Lot size: 137 shares

• Minimum investment required= Rs. 14,111 (= lower limit of price band * lot size)

• Bidding dates: 11^th – 13^th Nov’25

• Tentative listing date: 18^th Nov’25

Use of Funds

The Fresh Issue will primarily fuel PW’s next phase of expansion:

1. Establishment of new hybrid and offline centres under PW Vidyapeeth ~ Rs. 1,200 Cr

2. Lease and rental payments for existing premises ~ Rs. 600 Cr

3. Investment in Technology and platform scalability for better digital delivery ~Rs. 400 Cr

4. Marketing, brand-building, and product diversification ~Rs. 300 Cr

5. Working capital and general corporate purpose ~ Rs. 200 Cr

6. The OFS (Offer for Sale) component of Rs. 380 crore allows for a limited promoter exit.

(Source: DRHP of Physics Wallah, Page No 107)

Risks & Challenges

Despite remarkable growth, several risks remain:

Profitability risks: Although revenue is growing rapidly, achieving consistent profitability remains a challenge. As reported in RHP, they had a negative net worth (as of March 31, 2024) and negative EBITDA in Fiscal 2024.

Brand Dependency: heavy Reliance on the public image and reputation of Alakh Pandey, exposing to continuity and reputational risk.

Attrition rate: A 30% employee turnover rate poses a significant threat to consistency, content quality, and continuity.

Sector Volatility: The Indian EdTech industry is prone to regulatory shifts and post-pandemic (COVID-19) demand fluctuations.

High Valuation: At Rs. 103 – Rs. 109 per share, the implied valuation of Rs. 28,000 Cr – Rs. 32,000 Cr (nearly USD 4 Bn), the valuation seems to be inflated for a company which started not so long ago, and its profitability is still uncertain; rather, it is in its loss-making phase.

Limited Operating History: With a significant portion of the issue being allocated to offline centres, it is a known fact that they have limited experience in offline and hybrid channels of delivery.

Unusual Risk: There have been incidents in the past where a faculty member of Physics Wallah had been threatened with slippers over a video call, and more incidents like these could taint the reputation of the company.

Sources (DRHP of Physics Wallah, Page No 52-104)

Future Prospects

For Company:

Looking ahead, PhysicsWallah’s future appears tied to sustaining growth while achieving profitability. The company’s expansion into offline education, new exam categories, and skill-based learning gives it a long runway for growth. With strategic use of IPO funds and continued brand trust, Pw could evolve into India’s most diversified education ecosystem.

For Potential Investors:

However, investors should view this IPO as a ‘high risk, high return’ opportunity, which may promise long-term potential but is highly dependent on the institution's execution and cost control capabilities. Suppose the company can maintain its brand authenticity, improve faculty retention, and streamline offline operations. In that case, it stands prepared to transform India’s learning landscape and deliver value to investors over time.

In conclusion, PhysicsWallah’s IPO represents a bold step for an EdTech brand that began from a single YouTube channel. While the valuation may be ambitious, its mission-driven foundation makes it a company to watch, especially for investors willing to bet on India’s evolving education revolution.

Authored by: Sayali Chopra

Disclaimer:

This article is intended solely for information and educational purposes and does not constitute any financial, investment or legal advice. The data and analysis presented are based on publicly available information, including the company’s Red Herring Prospectus (RHP) and reputable financial news sources. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions. The author and publisher have no responsibility for any monetary losses or damages from reliance on the information contained herein.