Physics Wallah’s Successful IPO Shines Bright in Indian Edtech Market

The Rise of Indian Edtech Startup Physics Wallah

The first day of trading for Indian edtech startup Physics Wallah as a public company ended on a high note, with its shares closing a remarkable 44% higher than their initial listing price. This surge in value signals a potential recovery for the country’s edtech sector after a period of uncertainty.

Initially priced at ₹109, the company’s shares soared to ₹161.99 before settling at ₹156.49 by the end of the day, giving Physics Wallah a market valuation of ₹448 billion (approximately $5 billion). This valuation significantly exceeded its listing valuation of ₹315 billion (around $3.6 billion) and was a substantial 79% higher than its last private valuation of $2.8 billion in September 2024.

The IPO raised ₹34.8 billion (roughly $393 million) for Physics Wallah, with ₹31 billion (about $350.1 million) coming from a fresh issue of shares and the remaining ₹3.8 billion (approximately $42.9 million) from shares sold by co-founders Alakh Pandey and Prateek Boob, who collectively owned 80% of the company before going public.

The success of the IPO reflects the remarkable growth trajectory of Physics Wallah since its inception as a YouTube channel run by Pandey in 2016. The company now stands out in an industry grappling with layoffs, funding challenges, and the struggles of once-prominent competitor Byju’s. Today, Physics Wallah offers test preparation and upskilling courses through its online platform, apps, and physical centers.

In contrast to its rivals facing operational difficulties, Physics Wallah’s financial performance has been impressive. In the financial year 2025, the company reported a 49% increase in revenue to ₹28.9 billion (around $326 million) and a narrowed net loss of ₹2.4 billion (approximately $27.5 million) from ₹11.31 billion (about $127.7 million) the previous year. The company boasts 4.5 million paying subscribers, marking a 23% growth from the previous year.

Challenges in the Edtech Sector

While Physics Wallah thrives, its larger competitors face significant challenges. Byju’s, once valued at $22 billion, is currently embroiled in corporate governance issues, legal disputes with creditors, and financial constraints leading to mass layoffs. The company is undergoing insolvency proceedings in both India and the U.S.

Similarly, Unacademy has scaled back its operations and reduced its workforce. Reports suggest that the company is in talks to be acquired by upskilling platform UpGrad for $300 to $400 million, a sharp decline from its $3.44 billion valuation in 2021.

Future Plans for Physics Wallah

Looking ahead, Physics Wallah intends to utilize the proceeds from its IPO to expand its physical centers, enhance its technology infrastructure, and explore potential acquisitions. The company has already expanded its offline presence significantly, operating 303 centers across 152 cities in India and the Middle East as of June 2025, up from 182 centers the previous year.

During the IPO ceremony in Mumbai, Pandey expressed satisfaction with the milestone but emphasized that the company’s mission and vision require further realization. Physics Wallah remains committed to providing quality education and pursuing growth opportunities in the ever-evolving edtech landscape.