Physics Wallah IPO: Strong Debut Despite Edtech Slowdown

Physics Wallah's Successful Public Debut Signals Edtech Sector Recovery

The Indian edtech company, Physics Wallah, experienced a remarkably positive start to its journey as a publicly listed entity. Its shares concluded the first day of trading with a substantial 44% increase over the initial listing price. This performance suggests a potential resurgence within India’s edtech sector, following a period of challenges.

Initial Public Offering Details

Initially priced at ₹109, Physics Wallah’s shares peaked at ₹161.99 before settling at ₹156.49. This valuation places the company at ₹448 billion, equivalent to approximately $5 billion.

The company’s listing valuation of ₹315 billion (around $3.6 billion) was significantly surpassed, representing a roughly 79% increase compared to its last private valuation of $2.8 billion recorded in September 2024.

The IPO successfully raised ₹34.8 billion (approximately $393 million) for Physics Wallah. ₹31 billion (around $350.1 million) was generated through the issuance of new shares, while ₹3.8 billion (roughly $42.9 million) came from the sale of shares by co-founders Alakh Pandey and Prateek Boob.

Growth Trajectory and Industry Context

The robust IPO performance underscores the impressive growth of Physics Wallah since its inception as a YouTube channel in 2016, spearheaded by Pandey.

This success is particularly noteworthy given the current state of the industry, which has been impacted by workforce reductions, a decline in funding, and the difficulties faced by competitors like Byju’s.

Currently, the company delivers test-preparation and upskilling courses through its website, mobile applications, and a network of physical learning centers.

Challenges Faced by Competitors

While Physics Wallah thrives, other major players in the edtech space are encountering difficulties. Byju’s, formerly India’s most highly valued startup at $22 billion, is grappling with a corporate governance crisis, ongoing legal disputes with creditors, and a significant liquidity shortage. This has resulted in widespread layoffs and the initiation of insolvency proceedings in both India and the United States.

Unacademy, another prominent edtech firm, has also undergone substantial downsizing and staff reductions. Reports indicate that it is exploring a potential acquisition by upskilling platform UpGrad, valued between $300 and $400 million – a considerable decrease from its $3.44 billion valuation in 2021.

Financial Performance

In the financial year 2025, Physics Wallah reported a 49% increase in revenue, reaching ₹28.9 billion (approximately $326 million) compared to the previous year.

Furthermore, the company’s net loss narrowed to ₹2.4 billion (roughly $27.5 million), down from ₹11.31 billion (about $127.7 million) in the prior year.

Online platforms accounted for 48.6% of the company’s operating revenue, while its offline centers contributed 46.8%. Physics Wallah also reported a subscriber base of 4.5 million paying users, a 23% increase year-over-year.

Future Plans

“This IPO is a significant achievement,” stated Pandey during the listing ceremony in Mumbai. “However, our core objectives and long-term vision remain largely unfulfilled.”

Physics Wallah intends to allocate the majority of the IPO proceeds to expand its network of offline centers, enhance its technological infrastructure, and explore potential acquisitions.

The company has been actively growing its offline presence, currently operating 303 centers across 152 cities in India and the Middle East as of June 2025, an increase from 182 centers last year.