Indian edtech startup Physics Wallah (PW) made a remarkable debut on the public market, with its shares soaring 44% on its first day of trading. This strong performance signals a potential recovery for India's struggling edtech sector, which has faced years of funding droughts and corporate challenges. The successful IPO positions Physics Wallah as a beacon of growth amidst a challenging landscape for online education providers.
Shares, initially priced at ₹109, climbed to a high of ₹161.99 before closing at ₹156.49. This impressive surge valued the company at ₹448 billion (approximately $5 billion), significantly exceeding its listing valuation of ₹315 billion (around $3.6 billion). It also represents a substantial 79% increase from its last private valuation of $2.8 billion in September 2024.
Physics Wallah successfully raised ₹34.8 billion (approximately $393 million) through the IPO. Of this, ₹31 billion (around $350.1 million) came from a fresh issue of shares, while co-founders Alakh Pandey and Prateek Boob sold shares worth ₹3.8 billion (roughly $42.9 million). Prior to the listing, the co-founders collectively held about 80% of the company.
Physics Wallah's Growth Amidst Industry Headwinds
The robust IPO underscores Physics Wallah's extraordinary growth trajectory, which began in 2016 as a YouTube channel founded by Alakh Pandey. Today, the company stands out in an industry grappling with widespread layoffs, a severe funding crunch, and the dramatic decline of former market leader Byju's. Physics Wallah now offers comprehensive test-preparation and upskilling courses through its website, mobile applications, and a growing network of offline centers.
Physics Wallah's ascent comes as its larger rivals face significant operational hurdles. Byju's, once India's most valuable startup at $22 billion, has been embroiled in a corporate governance crisis, battling legal disputes with lenders, and struggling with a severe cash crunch that led to mass layoffs. The Bengaluru-based edtech giant is currently undergoing insolvency proceedings in both India and the U.S.
Similarly, Unacademy, another prominent edtech player, has drastically scaled back operations and cut staff. Reports suggest it is in talks to be acquired by upskilling platform UpGrad for $300 to $400 million—a steep decline from its $3.44 billion valuation in 2021.
Strong Financials and Future Plans
For the financial year 2025, Physics Wallah reported a 49% increase in revenue, reaching ₹28.9 billion (approximately $326 million) year-over-year. Concurrently, its net loss narrowed significantly to ₹2.4 billion (roughly $27.5 million) from ₹11.31 billion (about $127.7 million) in the previous year. Online channels contributed 48.6% of the operating revenue, with offline centers accounting for 46.8%. The company also saw a 23% increase in paying subscribers, reaching 4.5 million.
During the IPO ceremony in Mumbai, co-founder Alakh Pandey stated,
“It’s a good milestone to have the IPO coming our way, but the mission and vision are a lot to be left to be completed.”
Physics Wallah intends to allocate the majority of its IPO proceeds towards expanding its offline centers, enhancing its technology infrastructure, and funding potential acquisitions. The company has already aggressively grown its physical presence, operating 303 centers across 152 cities in India and the Middle East as of June 2025, a significant increase from 182 centers the previous year.
