Indian ed-tech platform PhysicsWallah has filed for an initial public offering worth $437 million, according to draft papers, signaling a surge in new listings in the market. This move comes at a crucial time as the ed-tech industry in India has faced challenges, with major players like Unacademy and Vedantu making cuts and Byju's facing financial troubles.
Backed by investors such as WestBridge and Hornbill Capital, PhysicsWallah aims to raise 31 billion rupees through new shares, while the remaining amount will come from a sale offer by co-founders Alakh Pandey and Prateek Boob. The platform, previously valued at $2.8 billion, plans to utilize the funds for expanding physical coaching centers, rent coverage, technology development, marketing strategies, and potential acquisitions.
In the fiscal year ending on March 31, PhysicsWallah reported a 49% increase in revenue, amounting to 28.87 billion rupees, while also reducing its losses to 2.43 billion rupees from 11.31 billion the previous year. The company took the confidential route to file draft papers with the market regulator to raise an estimated 46 billion rupees.
Despite a slow start, the Indian IPO market has seen a resurgence, with companies like Milky Mist and Urban Company also filing for public offerings in recent months. The exact details of PhysicsWallah's offering size have not been disclosed as of yet.
As the momentum for new listings strengthens in India and with the promising prospects of the ed-tech sector, the success of PhysicsWallah's IPO will be closely watched by industry observers and investors alike.
