PhysicsWallah Offloads INR 95.8 Crore Loan Portfolio, Partially Exits Lending Operations
PhysicsWallah’s arm FinZ Finance has agreed to sell a loan portfolio worth INR 95.79 cr to NBFC Auxilo Finserve, with the transfer anticipated to be completed within 60 days. The deal will partially close the lending activities of FinZ Finance.
In a deal to sell and transfer a loan portfolio, FinZ Finance, a wholly owned subsidiary of education technology startup PhysicsWallah, has reached an agreement with non-banking financial company (NBFC) Auxilo Finserve. The organisation stated in a filing with the stock exchange that the loan portfolio is worth INR 95.79 crore.
The transfer of debts and debtors is anticipated to be finalised within the next 60 days, according to the firm, following the execution of the deed of assignment on October 3, 2026. The lending operations of FinZ Finance are anticipated to be partially or partially shut down as a consequence of the sale to Auxilo. Auxilo is an NBFC in India that mainly serves the educational market. It is registered with the Reserve Bank of India.
PhysicsWallah wants to Focus on its Core Business
As part of its strategy realignment, PhysicsWallah is aiming to concentrate on its core competencies and maximise the use of its capital through this transaction. In its filing, the company explained that the sale of a large portion of FinZ Finance's loan portfolio is a part of a larger strategy realignment. The goal is to better allocate cash and concentrate on the company's core business operations. Moving ahead, the company plans to use well-established and regulated third-party NBFCs to ease lending activity.
According to PhysicsWallah, this change will lead to more efficient operations and less risk to the company's financial statements and credit rating. Earlier this year, in May, PhysicsWallah announced their intention to use a rights issue to invest INR 120 crore in FinZ Finance. In September 2025, the subsidiary acquired its licence, and in March 2026, it began operations. According to PhysicsWallah's administration, FinZ Finance mostly served its students, with loans made available to students already registered on the platform making up about 70-75% of the total.
PW’s Financial Outlook
For the fiscal quarter ending March 31, 2026, the firm has announced a reduction in its consolidated loss to INR 69.14 crore. Following a loss of INR 289.27 crore in the corresponding period last year, the reported loss reduction is attributable to higher enrolment and average revenue per person. A 51% rise over the March 2025 quarter's INR 609.6 crore in revenue from operations brought the total to INR 918.8 crore for the quarter. From INR 243.26 crore in FY25, the loss shrank to INR 24.17 crore in FY26.
As stated in the filing, PW will maintain its role as a platform that links PW's students with a carefully selected group of regulated lenders. Students will be linked to lenders according to their academic outcome journey and learning lifecycle. By making it more scalable, strong, and capable of greater penetration into the student ecosystem, PW will continue to allow affordability and accessibility.
