Edtech Unicorn Physics Wallah Hires Investment Bankers, Plans For IPO In 2025

Physics Wallah

Three points you will get to know in this article:

  • The edtech giant has lined up pitches from up to 10 investment bankers next week for an IPO in 2025.
  • Physics Wallah is eyeing a price higher than $2.8 billion, which was pegged earlier this month.
  • This move comes days after Physics Wallah raised $210 million in its Series B fundraising round, led by Hornbill Capital.

Physics Wallah Starts IPO Preparations, Calls Upon Investment Bankers

Physics Wallah

Physics Wallah, an edtech unicorn, is apparently planning to float on stock exchanges next year, following its recent $210 million fundraising round.

According to Moneycontrol, the edtech major has scheduled pitches from investment bankers for a planned initial public offering (IPO) in 2025.

“RFPs (request for proposals) have been submitted to at least ten investment banks, inviting them to present IPO pitches slated for the coming week. “These are early days, and no final decision has been made, but the intent to list exists,” a source said.

Another insider informed the media that the business intends to “aggressively pursue” its listing plans and is looking for a valuation higher than $2.8 billion, the amount at which it obtained its most recent fundraising earlier this week.

Physics Wallah’s Business, IPO, Funding, Financials

Physics Wallah was founded in 2020 by Alakh Pandey and Prateek Maheshwari and operates tech-enabled offline and hybrid centers for K-12 students in 105 towns across the country. It also offers test preparation verticals for various exams, a skilling arm, and study abroad verticals.

Physics Wallah will become India’s first edtech business to float on a stock exchange if its IPO plans are approved.

On Friday (September 20), the edtech business announced that it has raised $210 million in its Series B fundraising round, led by Hornbill Capital. Lightspeed Venture Partners joined the round, as did current investors GSV Venture and WestBridge Capital.

It joined the unicorn club in 2022 after raising $100 million in its first fundraising round from WestBridge and GSV at a valuation of $1.1 billion. It competes with BYJU’S, Unacademy, Vedantu, and others.

Physics Wallah’s net profit fell more than 90% year on year (YoY) to INR 8.9 crore in FY23, while operational revenue increased 234% YoY to INR 779.3 crore. Its cofounder and CEO, Maheshwari, told Inc42 that the firm generated INR 1,975 crore in FY24.

Challenging Phase for Indian Edtech Startups

The news comes while the country’s edtech industry is in chaos. The pandemic-fueled rise of edtech businesses slowed once schools reopened, forcing several to experiment with offline approaches.

However, the situation worsened as funding winter dried up capital for edtechs, even as their losses grew exponentially. Many of their high-profile purchases also failed to take off, resulting in massive layoffs at startups such as BYJU’S and Unacademy over the last two years.

Physics Wallah’s IPO intentions coincide with a surge in Indian businesses trying to list on the stock exchanges. So far this year, ten new-age tech businesses have listed on Indian stock exchanges, and many more are expected to do so due to good market mood and increased investor enthusiasm for startup IPOs.

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