Physics Wallah enjoys a rosy IPO day, bucking the broader slowdown in Indian edtech

The Indian edtech startup Physics Wallah celebrated a successful debut on the stock market, with shares surging 44% on their first day, suggesting a possible revival in the struggling edtech sector. Initially priced at ₹109, the stock reached a peak of ₹161.99 before settling at ₹156.49, which positions the company’s market valuation at approximately ₹448 billion (around $5 billion). This is a significant leap from its listing valuation of ₹315 billion (about $3.6 billion) and a stark contrast to its last private valuation of $2.8 billion from September 2024. The IPO enabled Physics Wallah to raise ₹34.8 billion (around $393 million), with ₹31 billion (approximately $350.1 million) coming from new shares and ₹3.8 billion (roughly $42.9 million) from co-founders Alakh Pandey and Prateek Boob, who sold part of their stakes. This success underscores the company’s impressive growth journey, originating from a YouTube channel started by Pandey in 2016, especially as other edtech firms grapple with layoffs and funding shortages. In stark contrast to Physics Wallah's achievements, competitors like Byju's and Unacademy are facing significant challenges. Byju's, once the crown jewel of Indian startups with a valuation of $22 billion, is currently embroiled in a corporate governance crisis and undergoing insolvency proceedings in both India and the U.S. Meanwhile, Unacademy is reportedly scaling back operations and is in discussions for a potential acquisition by UpGrad. Physics Wallah reported a 49% revenue increase for the financial year 2025, reaching ₹28.9 billion (approximately $326 million). The company also narrowed its net loss to ₹2.4 billion (around $27.5 million) compared to ₹11.31 billion (about $127.7 million) the previous year. Notably, online services contributed 48.6% of operating revenue, with offline centers providing 46.8%. The company now boasts 4.5 million paying subscribers, marking a 23% growth from the prior year. During the IPO ceremony in Mumbai, Pandey expressed his excitement, stating, “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.” Looking ahead, Physics Wallah intends to invest most of its IPO proceeds in expanding its offline centers, enhancing its technology infrastructure, and pursuing potential acquisitions. As of June 2025, the company operates 303 centers across 152 cities in India and the Middle East, significantly up from 182 last year.