Physicswallah Limited IPO

12 Nov 2025 , 11:09 AM

Physicswallah Limited (PW) is an Indian edtech company founded in June 2020 by Alakh Pandey and Prateek Boob. It offers professional learning and test preparation services for various competitive level examinations. These include national as well as state level examinations. JEE, NEET, UPSC are some of the key examinations for which it offers value for money, high quality services. PW operates in a hybrid model of digital platforms and a growing offline presence through its centres. It has expanded rapidly through M&A. The IPO is a combination of fresh issue and offer for sale. Fresh issue comprises the majority of the IPO. A significant chunk of the fresh issue proceeds is earmarked for M&A and strengthening its technology infrastructure.

 

Offer details of the IPO

• Total Offer Size – The total size of the issue is INR 3,480 crore. It comprises a fresh issue of equity shares worth up to INR 3,100 crore together with an offer for sale of up to INR 380 crore.
• The shares being sold by the existing shareholders are held by:
• Alakh Pandey (Promoter) – up to INR 1,900 million
• Prateek Boob (Promoter) – up to INR 1,900 million

 

Price Band: INR 103 to INR 109 per Equity Share

 

Book Running Lead Managers

• Axis Capital Limited
• P. Morgan India Private Limited
• Kotak Mahindra Capital Company Limited
• Goldman Sachs (India) Securities Private Limited

 

Indian Education and Edtech market – Overview

The Indian education and edtech sector is one of the fastest-growing sectors in the country. Its growth is fueled by increasing disposable income, internet and smartphone penetration, government initiatives including NEP 2020 and a young, aspirational population. K-12 readiness and test preparation are included in the range of learning solutions offered by the industry, as is skill-based vocational training, higher education support and corporate upskilling.

Table: Key Segments

Segment	Description
K-12 Test Prep	This focuses on competitive exams like JEE, NEET, CUET and various state board CET. This space contributes to a major revenue share for edtech and test prep firms. Fierce competition for seats in reputed institutions drives the demand for these services.
Vocational & Professional Education	Offers upskilling in IT, Data Science, AI, Finance and other popular courses with a focus on college graduates and working professionals.
Digital Learning Platforms	Businesses providing live classes, recorded content, AI-automated assessments and adaptive learning options. This segment has witnessed significant growth since the pandemic.
Publishing & Content Development	Includes classic and electronic textbook publishing, question banks and additional learning material becoming more interconnected with digital ecosystems.
International Expansion (Emerging Markets)	Indian edtech companies are replicating their model in the UAE, Southeast Asia and Africa with culture-specific content and scalable digital infrastructure.

Source: RHP

The market remains highly fragmented but is quickly consolidating as larger companies buy up regional and niche industry operators to increase their geographic footprint, broaden product offerings and gain economies of scale.

Table: Industry Growth Rates (Past and Future)

Segment	Historical CAGR (2019–2024)	Projected CAGR (2024–2029)	Remark
K-12 Test Preparation	18.5%	16.2%	Tier 1 cities are near saturation, but high demand continues; now benefiting from Tier 2/3 urbanisation and affordability through subscription models.
Vocational & Professional Education	24.1%	22.8%	Driven by Industry 4.0 requirements and corporate upskilling policies. AI and certification-linked learning are key expansion drivers.
Digital Learning Platforms	31.7%	20.5%	Post-pandemic growth is decelerating but remains the fastest-growing sub-segment; monetising through premium content and B2B partnerships, unit economics are improving.
Publishing & Content Development	9.3%	11.0%	Accelerating shift to digital away from print; integrated digital content with analytics. Key Driver – Margin Expansion.
International Growth (Emerging Markets)	N/A (Emerging)	35.0%	Earliest / fastest growth but highest risk; India’s cost-effective, scalable edtech model is replicating to the global stage, with the Middle East and ASEAN leading the way.

Source: RHP

 

Key Takeaways

• With a size of ₹24–26 trillion (US$300–310 billion), the Indian education sector is expected to double enrolment numbers by 2030, according to a RNCOS study. By that time, the K-12 education segment will be a ₹11.5–12.5 trillion (US$140–150 billion) market, demonstrating our leading share in the marketplace.
• The education market (including higher education) is estimated to be ₹15-16 trillion ($185-195 billion), showing a massively growing base.
• India’s demographic dividend – where more than 44% of the population is aged below 25 years – continues to sustain the demand for quality education.
• Policy (NEP 2020) and digital infrastructure initiatives support long-term growth of the sector as well as accessibility in DIKSHA, PM e-Vidya & Digital India.

 

Physicswallah Limited – Overview

Physicswallah Limited or PW, is an Indian edtech firm that was incorporated in June 2020 by Alakh Pandey and Prateek Boob. From humble origins as a Youtube channel, PW has become one of India’s Largest Test-Preparation and Professional education companies offering programs for tests such as JEE, NEET, UPSC & CAT. Based out of India, it works through a hybrid model of online as well as offline centres. Strategic acquisitions, technology integration and a scalable education ecosystem fuel the rapid growth of the company.

Subsidiaries & Acquisitions (Key Strategic Assets)

PW has completed several transformational acquisitions to enlarge its market presence and service profile:

Entity	Acquisition Year	Interest	Explanation & Benefits
PrepOnline	2023	Completely	Digital NEET Preparation with 100%-enhanced preparation and In-house Publishing Operations
iNeuron (to 100%)	2023	Expanded to Professional & Technical Education (IT, Data Science)	Strengthened offerings in professional and technical upskilling
Utkarsh Classes	2023	63.25%	Further presence in Rajasthan; entered the state exam preparation segment
Knowledge Planet	2023	63.25%	Launched an international footprint in the UAE
Xylem	2024	64.98%	Enhanced presence in South India
Bothra Classes	2023	Acauired by Penpencil	Increased penetration in Gujarat

Source: RHP

These acquisitions have since helped PW build a vertically integrated platform across test prep, professional upskilling, publishing and offline coaching with the same tech stack for content delivery, student engagement and analytics.

 

Competitive Positioning

Physicswallah Limited is an Indian edtech startup that is growing rapidly. Its key USP is in delivering test prep in an effective and engaging format. Its technology integration, market focus and economies of scale differentiate it from competitors. On the other hand, regulatory oversight and increasing competition are key factors to focus on. Sustained success will depend on disciplined capital deployment and differentiation beyond test prep.

Strengths

 

1. Market Leadership: PW is one of the top players in the test prep category in India – JEE, NEET, and UPSC entrances due to high demand & trust from students.
2. Full Learning Ecosystem: The company is building a full learning ecosystem, connecting online platforms, 100+ offline centres, publishing and upskilling businesses.
3. Edtech: PW’s AI-powered analytics and adaptive tools personalise learning and drive student productivity.
4. Brand Trust and Founder: Alakh Pandey’s presence on YouTube has led it to have a more organic reach and build a loyal base.
5. Scalable & transparent operation: PW has efficient integration of acquired companies at low costs, and excellent transparency in financial reporting. The above factors help maximise the confidence of the investor.

 

Weaknesses

 

1. Acquisition Growth: A large part of PW’s growth has been through acquisitions. The flip side of this is that potential integration problems or cultural misfires could act as a drag on performance and undermine the deal’s long-term value.
2. Regulatory and Tax Risks: PW receives tax deductions. Regulatory and policy changes could impact profitability and financial planning.
3. Intense competition from the market: There is intense competition from the likes of Byju’s, Unacademy, and Vedantu.
4. Brand that is Founder-Focused: PW still relies on its founder’s brand equity. Any erosion of it could be detrimental to its prospects.

 

Financial Profile

Strong Revenue Growth: The Company reported a strong topline growth of 33.36% YoY from ₹6,351.96 mn in the Q1 FY 2024 to ₹8,470.88 mn in Q1 FY 2025. The increase was attributed to a larger number of students enrolled, product diversification and balanced online-offline expansion. “Other income” increased 132.84% YoY to ₹583.23 mn, mainly on account of franchise services and investment gains. Technology-led learning and strategic acquisitions also helped bolster overall momentum.

Profitability Under Pressure: PW posted a loss of ₹1,270.09 mn in Q1 FY 2025 compared to a loss of ₹718.12 mn in Q1 FY 2024; Profit margin contracted to (14.99%). Employee benefits increased by 37.07% to ₹4,597.47 mn; Server costs expanded by 26.24%, impacting margins. Depreciation (12.78% increase) to ₹976.27 mn was higher due to higher CapEx in tech and offline centres. Such losses are a reflection of the fact that PW is prioritising growth over short-term profitability.

 

Table: KPI Comparison

Company Name	Particulars (with Unit)	FY23	FY24	FY25	CAGR
Physicswallah Limited	Revenue from operations (₹ in million)	7,443.18	19,407.10	28,866.43	97%
	Revenue from operations (Online Channel) (₹ in million)	4,557.70	9,650.15	14,040.50	–
	Revenue from operations (Offline Channel) (₹ in million)	2,811.18	9,279.07	13,518.70	–
	Other income (₹ in million)	282.26	746.38	1,524.46	–
	Total income (₹ in million)	7,725.44	20,153.48	30,390.89	–
	Loss before tax (₹ in million)	(894.46)	(11,926.94)	(2,585.52)	–
	Loss for the year (₹ in million)	(840.75)	(11,311.30)	(2,432.58)	65%
	Loss margin (%)	(11.30)%	(58.28)%	(8.43)%	–
	EBITDA (₹ in million)	138.58	(8,293.46)	1,931.95	270%
	EBITDA Margin (%)	1.86%	(42.73)%	6.69%	–
	Adjusted EBITDA (₹ in million)	1,193.18	669.87	4,319.61	–
	Adjusted EBITDA Margin (%)	16.03%	3.45%	14.96%	–
	Total Employees (number)	7,253	12,956	15,775	–
	Total Faculty Members (number)	2,436	3,654	5,096	–
	Faculty members (Employees) (number)	2,292	2,850	4,207	–
	Faculty members (Consultants) (number)	144	804	889	–
	Education Categories (number)	6	13	13	–
	Total Number of Paid Users (in million)	1.76	3.63	4.46	–

Source: RHP