PhysicsWallah will be a public company that will enter India with a valuation of USD $3.6 billion. The ed-tech company is set to be listed later this month when it opens its initial public offering of 3,480 crore. The price range is at $109 per share, which is lower than the $4.2 billion mark attained in a secondary deal in the first half of this year. The company still attracts the attention of investors who consider its low-cost education model to be the source of long-term demand.
The company expanded its presence via YouTube to become a big ed-tech company by providing low-cost courses and leveraging impactful social media interaction. The digital adoption in India contributed to the growth of the platform in the cities and towns in India. The founders, Alakh Pandey and Prateek Maheshwari, have created the platform to reach the students who are in need of affordable learning opportunities.
The IPO involves a fresh issue of Rs 3,100 crore and the sale of Rs 380 crore by the founders. None of the current investors intends to dispose of their interests in the offering. WestBridge Capital and Lightspeed Venture Partners support the company and hold considerable positions. Founders also hope to maintain 72% of company ownership after the IPO.
The size of the offering was lowered to 3,820 crore after the company scaled down the offer-for-sale portion. The updated organisational framework corresponds to the mission of the founders to ensure that investor dilution is minimal and yet funds its growth. They termed the listing as a move to distribute value growth to a broader group of stakeholders. The bidding in the IPO begins on November 11.
PhysicsWallah continued to use a low-price business model to enhance accessibility among students. Its online entry-level courses cost approximately Rs 4,000. This strategy was very useful in enabling the company to grow when other ed-tech companies reduced operations. The company currently introduces new paid features to reinforce its revenue model. All these additions aim at increased retention and profitability.
The company, too, will increase its offline presence. It will go on to establish more centres in other cities to access more students. The management said that there has been no drastic expansion of the user base with the company altering its offerings and value-based services..