Edtech unicorn PhysicsWallah has filed updated draft papers with markets regulator Sebi to raise ₹3,820 crore through an initial public offering (IPO) for expansion and growth initiatives.
The proposed IPO comprises a fresh issue of equity shares worth ₹3,100 crore and an offer for sale (OFS) of shares aggregating up to ₹720 crore by promoters, according to the updated draft red herring prospectus (UDRHP) filed on Saturday (September 6, 2025).
Both promoters, Alakh Pandey and Prateek Boob, will each offload shares worth ₹360 crore through the OFS. At present, both hold 40.35% stake each in the company.
The Noida-based PhysicsWallah filed draft papers in March with Sebi for an IPO through a confidential pre-filing route and received the market regulator’s approval in July. Following this, the companies are required to file an updated DRHP before filing an RHP.
The company opted for the confidential pre-filing route, which allowed it to withhold public disclosure of IPO details until later stages.
Of the fresh issue proceeds, PhysicsWallah said ₹460.5 crore will go towards fit-outs of new offline and hybrid centres, and ₹548.3 crore will be used for lease payments of existing centres.
The company will invest ₹47.2 crore in its subsidiary Xylem Learning, including ₹31.6 crore for new centres and ₹15.5 crore for lease payments and hostels.
A further ₹33.7 crore will be directed to Utkarsh Classes and Edutech for lease payments of its centres. Additionally, ₹200.1 crore is earmarked for server and cloud infrastructure, ₹710 crore for marketing initiatives, and ₹26.5 crore for acquiring an additional stake in Utkarsh Classes.
PhysicsWallah offers test preparation courses for competitive exams focusing on JEE, NEET, GATE and UPSC, along with upskilling programmes, delivered through online platforms (YouTube, website, and apps), tech-enabled offline centres, and hybrid centres that combine online teaching with in-person support.
Its main YouTube channel, “Physics Wallah-Alakh Pandey”, had about 13.7 million subscribers as of July 15, 2025, while its overall YouTube network had 98.8 million subscribers by June 30, 2025, growing at a CAGR of 41.8 per cent between FY23 and FY25. Apart from its strong digital presence, PhysicsWallah has also built a significant offline footprint.
The company, which is backed by WestBridge Capital, Hornbill, and GSV Ventures, narrowed its losses to ₹243 crore in the year ended March 2025 from ₹1,131 crore in the preceding year. However, revenue rose to ₹2,887 crore, up from ₹1,941 crore in the same period.
Kotak Mahindra Capital Company, J.P. Morgan India, Goldman Sachs (India) Securities and Axis Capital have been roped in by the company to manage its public offering.