India’s largest publicly traded edtech company, PhysicsWallah (PW), has shifted its approach to student financing. Instead of offering direct loans through its finance subsidiary, PW will now partner with established lending institutions to meet student needs.
This change comes shortly after PhysicsWallah announced a significant investment of around ₹120 crore (about £10.3 million) into FinZ Finance, its fully owned subsidiary that received a license to operate as a non-banking financial company (NBFC) from the Reserve Bank of India in September 2025.
The company stated that it has formed partnerships with multiple regulated non-bank lenders to assist students in their financing journey. In a public announcement, PhysicsWallah explained that it will restructure its lending strategy while collaborating with leading third-party NBFCs to enhance student lending services.
“Our lending operations are best handled by established third-party NBFCs that possess solid underwriting capabilities,” said Prateek Maheshwari, co-founder of PhysicsWallah.
Under this new approach, PhysicsWallah will act as a technology platform, helping students connect with selected lending partners based on their educational journeys and achievements. This strategy aims to lessen financial risks associated with lending.
Maheshwari emphasized that feedback indicated the company’s strengths lie primarily in education and community engagement rather than in lending. He stated, “We believe that good financial management and adding value for our shareholders are vital. With this in mind, we’ve chosen to collaborate with regulated third-party NBFCs for student lending.”
While the future of FinZ Finance will be determined later, pending board and regulatory approvals, investors reacted positively to the announcement, with PhysicsWallah’s stock rising by up to 17%.
This decision marks a significant transformation for PhysicsWallah, which has positioned itself as one of India’s fastest-growing educational companies. The company made headlines in November 2025 when it became India’s first edtech unicorn to go public, aiming for a valuation of around $3.6 billion, unlike competitors facing difficulties during broader industry challenges.
As PhysicsWallah’s stock market debut coincided with struggles for other major edtech firms—like Byju’s legal issues and Unacademy’s slowing growth—investor interest in sustainable business models has grown.
In its latest financial results for Q1 2026, PhysicsWallah reported a 51% year-over-year revenue increase to ₹919 crore (about £78.5 million) and narrowed losses by 76% to ₹69 crore (£5.9 million).
Co-founder Alakh Pandey shared that responsible growth would remain central to the company’s mission, as they expand their physical learning centers across India. He expressed a commitment to running the company with discipline to ensure its continued success while navigating this hyper-growth phase.
