PhysicsWallah Takes Confidential Route For A $500 Mn IPO

SUMMARY

The edtech unicorn took the confidential route to file its DRHP with SEBI for an INR 4,600 Cr

A large component of the startup’s IPO would be an offer for sale

PhysicsWallah has raised over $310 Mn from investors like Lightspeed, GSV and WestBridge

After months of speculation, edtech unicorn PhysicsWallah has reportedly filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an INR 4,600 Cr ($531.4 Mn) initial public offering (IPO) via the confidential filing route.

Citing sources, Moneycontrol reported that a large component of the public offering would be an offer for sale (OFS).

PhysicsWallah, which has raised over $310 Mn since inception in 2016, counts the likes of Lightspeed Venture Partners, GSV, WestBridge, among its investors. The names of the investors who will be offloading shares during the IPO are yet to be discerned.

PhysicsWallah declined to comment on Inc42’s queries regarding the confidential filing of the draft papers.

Besides, the valuation that PW is eyeing for its IPO is yet to be discerned. It is pertinent to mention that the edtech major raised $210 Mn in its Series B funding round, led by Hornbill Capital, in September last year at a valuation of $2.8 Bn.

With this, PW becomes the second startup in recent times to file for an IPO confidentially. Foodtech major Swiggy also filed for its IPO confidentially last year. Besides, OYO had also taken the confidential route to file its DRHP back in 2021.

While the startup has taken the confidential IPO route, it has been open about its bid to go public for some time now. After the startup turned into a public entity in December 2024, sources indicated to Inc42 that the edtech startup could become a listed entity by the Diwali festive season this year.

Before converting into a public entity, PW was said to be in talks with four investment bankers, namely Axis Capital, Kotak Mahindra Capital, Goldman Sachs and JP Morgan.

On the road to IPO, the startup has been busy beefing up its board as well as its executive suite. For instance, last week it appointed three independent directors, former Zomato deputy CFO Nitin Savara, former RBI regional director Rachna Dikshit and, to its board. Besides, earlier in January, it roped in Ajinkya Jain as group general counsel, company secretary and compliance officer.

It is pertinent to mention that the edtech unicorn has ventured into the IPO process as a loss making entity. As per its latest financial disclosures, the startup posted a consolidated net loss of INR 1,131.2 Cr, a whopping 13.5 times the INR 84.06 Cr loss it incurred in the fiscal prior.

Meanwhile, its revenue from operations also surged 2.6X to INR 1,940.4 Cr in FY24 from INR 744.3 Cr in the previous year.