Physics Wallah files pre-IPO draft papers with SEBI: Reports

Edtech unicorn Physics Wallah, led by educator Alakh Pandey, is taking a significant step toward going public. The company has filed a pre-filing draft offer document (PDRHP) with the Securities and Exchange Board of India (SEBI), aiming to raise ₹4,600 crore through an initial public offering (IPO), according to reports.

Understanding the Pre-Filing Process for IPOs

The pre-filing of offer documents is an alternative mechanism introduced by SEBI for mainboard IPOs. This allows companies to file offer documents for initial scrutiny without making them publicly available. Companies opting for this route can receive SEBI’s feedback before proceeding with the public filing of the Draft Red Herring Prospectus (DRHP).

Physics Wallah’s IPO Plans and Structure

Reports indicate that Physics Wallah's IPO will include both a fresh issue of equity shares and an offer for sale (OFS). The company's board has already approved the move, and further details regarding the shareholding structure, pricing, and investor participation are expected in the coming months.

Physics Wallah Joins Other Major Indian Firms in Pre-Filing Route

With this move, Physics Wallah becomes the seventh major Indian firm to choose the confidential pre-filing route for IPOs. Other companies that have opted for this method include Swiggy, Tata Play, Oyo, Vishal Mega Mart, Credila Financial Services, and Indira IVF.

Recent Developments and Fundraising Efforts

In November 2024, reports suggested that the founders of Physics Wallah were in talks with investment bankers after successfully closing a $210 million funding round. The company has received investments from firms such as Hornbill Capital, Lightspeed Ventures, Westbridge, and GSV Ventures.

Growth and Expansion of Physics Wallah

Founded in 2020 by Alakh Pandey and Prateek Maheshwari, Physics Wallah started as a YouTube channel providing educational content for competitive exams like NEET, JEE Mains, and BITSAT. The platform has now evolved into a full-fledged edtech company, offering NCERT solutions, sample papers, and previous year exam papers.

User Base and Market Presence

Physics Wallah has seen rapid growth over the years. It currently serves over 3.5 million registered students and has a massive following of 78 lakh subscribers on YouTube. The Physics Wallah app also enjoys high engagement, boasting a 4.8-star rating.

First Indian Edtech Firm to Go Public

If Physics Wallah successfully completes the IPO process, it will become the first Indian edtech company to be listed on domestic stock exchanges. This would be a milestone for India’s edtech sector, paving the way for other players to consider public listings.