Edu-tech Unicorn PhysicsWallah Chooses 4 Investment Banks for $400-$500 Million IPO in 2025

According to a media report, PhysicsWallah, the leading ed-tech unicorn, has picked four investment banks as advisors as it prepares for its 2025 IPO plans, following a capital round last month that valued it at $2.8 billion. PhysicsWallah has selected Axis Capital, Kotak Mahindra Capital, Goldman Sachs, and JP Morgan in response to the recent IPO proposals, the report added. It was unclear if additional banks would be added later on if necessary.

The proposed issue may aim to raise between $400 million and $500 million, while the exact amount has not yet been decided and the transaction size may change later. Additionally, based on the various investors' lock-in periods and investment plans, the sale is probably going to be a combination of primary and secondary issues of shares, permitting growth funding and exit windows if necessary.

The Valuation Speculations

According to various reports, PhysicsWallah would aim for a substantial premium above the last round's valuation of $2.8 billion. Industry rumours suggest a $4–5 billion target valuation; however, this has not been independently confirmed. Westbridge Capital, GSV Ventures, Lightspeed Venture Partners, and Hornbill Capital are among the investors in the company.

Physicswallah Could Become India’s First Ed Tech Firm to Debut on the Domestic Bourses

Given the uncertainties surrounding the previous listing aspirations of struggling peer Byju's unit, Akash Education Services, PhysicsWallah may become India's first educational technology company to make its debut on the domestic markets if these intentions eventually materialise into a listing. Indeed, competitors Vedantu and UpGrad have previously discussed their IPO intentions. Other companies in the market include Unacademy, Unext Learning, Allen Career Institute, K12 Techno, Brightchamps, and Simplilearn.

PhysicsWallah raised $210 million through main and secondary purchases on September 20. Along with current investors WestBridge Capital and GSV Ventures, Lightspeed Venture Partners participated in the capital raise, which was spearheaded by Hornbill Capital. Investor trust in the industry's potential was demonstrated by the $2.8 billion valuation that PhysicsWallah was able to get, which was 2.5 times greater than the $1.1 billion it had previously received after its previous funding, despite difficulties in the Indian edtech sector. In its first fundraising round, the company raised $102 million from WestBridge and GSV Ventures.

Exploring the world of finance

In 2014, the Noida-based business began as a YouTube channel. It has more than 112 YouTube channels in five Indian languages, with almost 46 million subscribers. The company employs over 14,000 people, has 5.5 million paid students, and uses technology-enabled offline and hybrid centres to operate in 105 Indian cities.

 The company's highest absolute EBITDA year is anticipated to be FY25. The firm's offline centres, which have required a large financial investment, will also begin to produce results over time, even though its online activities have been almost 50% profitable since day one. Its revenue increased 2.5 times in FY24. For FY24, the company had anticipated INR 2,400 crore in revenue.

Physics Wallah Secures $210 Mn Funding at a Valuation of $2.8 Bn

Physics Wallah raises $210M in Series B, boosting its valuation to $2.8B. Led by Hornbill Capital with Lightspeed, GSV, and WestBridge support.

StartupTalkySubham Kumar