From Slipper Threats To Falling Ceiling Fans — PhysicsWallah's IPO Filing Flags Unusual Risks

PhysicsWallah Ltd., one of India’s largest edtech platforms, has filed an updated draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering worth Rs 3,820 crore. Beyond the usual mentions of competition and regulatory hurdles, the filing highlights a strikingly unusual risk factor: student safety incidents inside its offline learning centres.

The DRHP cites episodes ranging from harassment complaints and safety concerns to bizarre disruptions. In one instance from 2023, a student allegedly threatened a faculty member with a slipper during a video call. Another case involved a staff member pushing a student at an offline centre, caught on video and circulated widely online. The company said the staff member was terminated after an internal inquiry.

The prospectus also refers to an FIR filed after a ceiling fan fell on a student at a New Delhi centre, though the matter has since been settled. While PhysicsWallah said it has introduced safeguards to prevent harm to students, it cautioned that such measures cannot guarantee incidents will not occur, warning of potential damage to its reputation, business, and financial condition.

Founded in 2016 as a YouTube channel, PhysicsWallah has expanded into a full-stack education company spanning K-12, NEET, JEE, UPSC, and state-level competitive exams, along with ventures into study abroad, degree programmes, and upskilling. Its brands include Knowledge Planet, Xylem Learning, and Utkarsh Classes, serving over 2 million students annually across Tier-II and Tier-III cities.

The company remains founder-led, with cofounders Alakh Pandey and Prateek Maheshwari each holding around 40.35%, amounting to over a billion shares apiece.

In FY25, PhysicsWallah reported total income of Rs 2,886 crore, compared with Rs 1,940 crore in FY24 and Rs 744 crore in FY23. Net losses narrowed sharply to Rs 240 crore in FY25, from Rs 1,127 crore in FY24 and Rs 85 crore in FY23, according to the DRHP.

A large portion of revenue comes from offline centres in the National Capital Region, Patna, Kota, Kozhikode, Lucknow and Kolkata. The company has appointed Kotak, JP Morgan, Goldman Sachs, and Axis Capital as book-running lead managers for the IPO.