PhysicsWallah’s draft red herring prospectus (DRHP), filed for its highly anticipated ₹3,820 crore IPO, drew online attention after Zerodha highlighted an unusual risk disclosure: “Failure to protect students’ safety and security may negatively impact our reputation and business.” The DRHP goes beyond boilerplate language, listing real incidents—including a student threatening a faculty member with a slipper over a video call, and the viral video of a staff member pushing a student at an offline center (for which the staff was terminated).
Another case cited was an FIR after a ceiling fan fell on a student in New Delhi, an incident that has since been resolved. These disclosures come amid the company’s rapid offline expansion, and signal both the operational realities and the reputational stakes as PhysicsWallah scales in-person coaching while serving millions of students in digital and hybrid modes.
IPO Details: A Major Step in India’s Edtech Evolution
PhysicsWallah seeks to raise ₹3,820 crore through the IPO: ₹3,100 crore via a fresh issue and ₹720 crore through an offer for sale from founders Alakh Pandey and Prateek Maheshwari, each selling shares worth ₹360 crore. The offering, managed by Kotak, JP Morgan, Goldman Sachs, and Axis Capital, highlights the growing maturity and ambition of Indian edtech firms as they tap public markets for the next phase of growth.
Financial Performance: Fast Growth, Narrowing Losses
PhysicsWallah posted robust revenue growth of 49% in FY25, with operational revenue climbing to ₹2,886.6 crore (up from ₹1,940.7 crore in FY24). Net losses shrank sharply to ₹243 crore in FY25, a significant turnaround from the ₹1,131 crore loss the previous year. This improvement stems from scaling both online and offline operations—offline centers contributed nearly as much revenue as digital platforms (₹1,351.9 crore vs. ₹1,404.0 crore, respectively) and now operate in 198 centers across 109 cities. The company also boasts over 4.5 million paid users, with a presence deep in Tier-II and Tier-III India. For detailed finanical breakdown refer this article.
Read this: After Heavy Losses, PhysicsWallah Turns EBITDA Profitable in FY25, Slashing Losses by 78%
Use of Proceeds: Fueling an Ambitious Hybrid Model
The IPO proceeds are earmarked for setting up new offline centers, lease payments, investment in subsidiaries like Xylem Learning and Utkarsh Classes, upgrading cloud/server infrastructure, and ramping up marketing efforts. This aligns with the company’s strategy of diversifying revenue streams, supporting regional expansion, and winning new students in a fiercely competitive market.
Read this: Not Drishti IAS, but PhysicsWallah Acquires 40% Stake in Delhi-Based Sarrthi IAS at Rs 250 Cr Valuation
Transparency and Industry Context
PhysicsWallah’s candid disclosure of safety-related incidents stands out for its transparency—a rarity in the industry. By putting student safety front and center, the company acknowledges operational complexities as it expands its offline footprint, while signaling to investors that it is serious about governance, compliance, and reputational management.
Check out the post by Zerodha:
PhysicsWallah has a unique risk 😅
— Markets by Zerodha (@zerodhamarkets) September 8, 2025
Source: Company DRHP pic.twitter.com/1XoLipLq1r
Final Thoughts
PhysicsWallah’s IPO journey is defined not just by its numbers and ambitions, but by its willingness to address thorny risks as it evolves. As one of the leading edtech names in India, its strategy, disclosure practices, and growth are sure to remain in the spotlight—on Dalal Street and beyond. For the sector, the company’s approach sets a new bar for openness, as edtech firms seek not just success, but also public trust.
