PhysicsWallah, a Noida-based edtech firm, has filed the revised version of the red herring prospectus (UDRHP) with Sebi to issue an initial public offering (IPO) of 3820 crore. The offering comprises a combination of fresh equity issue and offer to sell by the company's promoters.
The new issue will comprise 3,100 crore, and the offer for sale will be 720 crore. Alakh Pandey and Prateek Boob, the company's founders, will sell 360 crore shares each. They both have a 40.35% share. The IPO will finance the company's expansion plan, which comprises infrastructure development, technological upgrade, marketing and investment in its subsidiaries.
PhysicsWallah will invest a large part of the IPO proceeds in upgrading its physical infrastructure. The firm has spent 460.5 crore on the development and fit-out of new offline and hybrid learning facilities. Moreover, 548.3 crore will be utilized to pay the lease on its current centres.
Additional investment involves a sum of 47.2 crore in its subsidiary, Xylem Learning. Such funds shall cater to the expenses of setting up new centres, lease payments, and hostel facility construction. Lease-related commitments have been assigned to Utkarsh Classes and Edutech for another 33.7 crore. This indicates that the company is engaged in a broader initiative to enhance its presence in multiple cities through strategic subsidiary assistance.
PhysicsWallah will spend 200.1 crore to upgrade its cloud and server infrastructure to support its online infrastructure. Parallel to this, 710 crore will be spent on marketing and promotional activities to gain brand awareness and customer experiences.
Another engagement the company has decided to make is investing 26.5 crore in the equity of Utkarsh Classes. This will be in line with its strategy of consolidating its holdings in its subsidiaries and creating integrated growth in its learning platforms. PhysicsWallah is a famous online test preparation and upskilling course that has experienced rapid growth in the digital sphere. By the middle of July 2025, the company's flagship YouTube channel, Physics Wallah-Alakh Pandey, had 13.7 million subscribers.
By mid-June 2025, the site had 98.8 million subscribers on its wider YouTube channels. The FY23 to FY25 channel network growth rate (CAGR) was 41.8% per annum. The company has been growing its offline business to supplement its online business.