Edtech unicorn reports sharp drop in losses and strong revenue growth ahead of ₹3,820 Cr public listing
Edtech unicorn PhysicsWallah (PW) has significantly ramped up its marketing investments, spending ₹276.2 crore on advertising and publicity in FY25-nearly 10% of its total revenue. This marks a sharp push in brand building as the company gears up for its ₹3,820 crore IPO, according to its latest Draft Red Herring Prospectus (DRHP) filed with SEBI.
The IPO comprises a fresh issue of ₹3,100 crore and an offer-for-sale (OFS) of ₹720 crore, with co-founders Alakh Pandey and Prateek Maheshwari each set to offload shares worth up to ₹360 crore.
Strong Financial Performance in FY25:
PhysicsWallah reported a significant reduction in losses to ₹243.3 crore in FY25, down from ₹1,131 crore in FY24. Revenue from operations grew 49% year-on-year, reaching ₹2,886.6 crore, up from ₹1,940.7 crore the previous year.
- Services contributed ₹2,614.5 crore (90.6% of total revenue)
- Coaching services alone: ₹2,498.6 crore
- Online courses: ₹1,040 crore
- Offline classes: ₹1,352 crore
- Books and merchandise: ₹259 crore
- Ad and other operating income: ₹13 crore
Aggressive Expansion Plans:
Total expenses stood at ₹3,264 crore in FY25, with advertising spend among the top cost heads as PW promoted new offerings across both online and offline channels.
Out of the IPO proceeds, PW has earmarked:
- ₹710 crore for promotional activities
- ₹460.5 crore for new offline/hybrid center fit-outs
- ₹548.3 crore for lease payments at existing centers
- ₹200 crore for cloud/server infrastructure
- ₹47.2 crore for subsidiary Xylem Learning
- ₹33.7 crore for Utkarsh Classes & Edutech
Brand & Community:
Backed by WestBridge Capital, Hornbill, and other investors, PhysicsWallah continues to solidify its edtech leadership. Its flagship YouTube channel, “Physics Wallah – Alakh Pandey,” now boasts 13.7 million subscribers, reinforcing its strong digital presence.
The company also recently launched the Aryabhata AI model for precision-driven JEE preparation, further enhancing its tech-first learning ecosystem.
