SUMMARY
- PW plans an IPO, selecting Axis Capital, Kotak, Goldman Sachs & JP Morgan as bankers.
- The firm aims to raise $400-500M, despite reporting a 90% drop in net profit.
- Founded in 2020, PW has expanded services and 2X it’s valuation to 2.8B
Edtech unicorn Physics Wallah has finalized Axis Capital, Kotak Mahindra Capital, Goldman Sachs, and JP Morgan as the lead investment bankers for its upcoming initial public offering (IPO), set for next year, according to a MoneyControl report.
As per the report, a source stated, “No quantum has been finalised yet and the deal size may vary later, but the proposed issue may look to raise in the range of $400 million to $500 million.”
Physics Wallah, founded by Alakh Pandey and Prateek Maheshwari in 2020 is one of the most successfull unicorn Ed-tech’s in India. Through the years, it has increased the range of services it provides, and now provides, coaching for exams like JEE, NEET, UPSC, SSC, IBPS among others, test preparation, and courses for K–12 students.
The company raised $210 million last month in a round headed by Hornbill Capital amidst the Ed-tech industry’s funding problems. In addition, the startup doubled its valuation to $2.8 billion.
The Ed-tech had a substantial increase in its expenses, which caused its net profit to drop over 90% to ₹8.9 crore in FY23 from ₹98.2 crore in the previous fiscal year. Between FY22 and FY23, operating revenue increased by 234% to ₹779.3 crore from ₹233 crore.
