Physics Wallah enjoys a rosy IPO day: What happened?
Physics Wallah enjoys a rosy IPO day as its shares surged 44% on debut, signaling renewed investor confidence in Indian edtech. Priced at ₹109 per share, it climbed to ₹161.99 before closing at ₹156.49, valuing the company at ₹448 billion ($5 billion). This exceptional performance comes despite a broader slowdown in the sector, which has seen rivals like Byju’s struggle with layoffs and funding challenges.
How much did Physics Wallah raise in its IPO?
The company raised ₹34.8 billion ($393 million) in total. Of this, ₹31 billion ($350.1 million) came from fresh shares, while co-founders Alakh Pandey and Prateek Boob sold ₹3.8 billion ($42.9 million) worth of their holdings. With an 80% pre-IPO stake, the co-founders retained significant control while fueling expansion plans for online courses, offline centers, and test-prep programs.
Why is Physics Wallah bucking the Indian edtech slowdown?
Physics Wallah’s rise stands out as many Indian edtech firms face a tough environment. Unlike its competitors, the startup leveraged a strong content-driven approach, beginning as a YouTube channel in 2016. Its focus on affordable test preparation and upskilling courses has attracted millions of students nationwide, helping it weather the sector-wide challenges of funding shortages and operational cutbacks.
What does this mean for India’s edtech future?
Physics Wallah’s successful IPO suggests investor optimism may return to India’s edtech space. While major players like Byju’s face insolvency issues, the growth of agile startups like Physics Wallah could reshape market dynamics, encouraging further investment and innovation in affordable, high-quality educational services.
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