PhysicsWallah has received a significant boost ahead of its initial public offering (IPO), with Think Investments injecting Rs 136.17 crore in a pre-IPO funding round. This development comes as PhysicsWallah prepares to launch its Rs 3,480 crore IPO.

Investment Details

Think Investments has acquired a 0.37% stake in PhysicsWallah, purchasing 1.07 crore equity shares from 14 company employees. The investment was made at Rs 127.00 per share, which is notably 17% above the upper end of the IPO price band.

Upcoming IPO Highlights

PhysicsWallah's IPO is set to open on November 11, with the following key details:

The offer for sale component will be contributed by co-founders Alakh Pandey and Prateek Boob.

Shareholding Structure

Post-IPO, the promoter shareholding in PhysicsWallah is expected to decrease from 80.62% to 72.00%.

Recent ESOP Liquidations

Between January and July, PhysicsWallah witnessed multiple Employee Stock Ownership Plan (ESOP) liquidations:

• Share price range: Rs 127.00 - Rs 137.00
• Total investment by family offices: Nearly Rs 76.00 crore

This pre-IPO investment and the upcoming public offering mark significant milestones for PhysicsWallah, reflecting growing investor interest in the edtech sector and the company's potential for growth in the public market.

EdTech unicorn PhysicsWallah has announced plans to raise ₹3,100 crore through a fresh issue, marking a significant step in its growth strategy. The company aims to use these funds to expand its offline presence and enhance its hybrid learning model over the next three years.

Expansion Plans

PhysicsWallah intends to launch 200 new tech-enabled offline centres, adding to its existing network of over 300 centres. Co-founders Alakh Pandey and Prateek Maheshwari describe this move as a natural progression rather than a pivot, emphasizing their commitment to providing hybrid learning experiences for students.

Financial Performance

The company has demonstrated strong financial growth:

PhysicsWallah's offline business currently operates with margins of 15-18%.

Student Reach

The EdTech platform boasts an impressive student community:

• Total Students: 12 crore
• Digital Channels: 900+

Fund Allocation

The raised capital will be utilized for various purposes:

• Capex for new centres
• Lease payments
• Cloud infrastructure
• Branding initiatives
• Events and marketing activities

Business Model

PhysicsWallah's revenue model aligns with academic calendars, resulting in stronger performance during the third and fourth quarters of the fiscal year. The company expects to achieve PAT (Profit After Tax) profitability in the near future.

Market Impact

This substantial funding round and expansion plan highlight the continued growth and evolution of the EdTech sector in India. PhysicsWallah's focus on a hybrid learning model demonstrates the industry's shift towards blending online and offline educational experiences, potentially setting a new trend for other players in the market.

As the company expands its offline presence, it will be interesting to observe how this impacts the broader EdTech landscape and whether it leads to increased competition or collaboration among various educational platforms.

For students and parents, this expansion could mean increased access to quality education through a mix of digital and physical learning environments, potentially revolutionizing the way education is delivered in India.

Investors and market watchers will likely keep a close eye on PhysicsWallah's execution of this expansion plan and its impact on the company's financial performance in the coming years.