PhysicsWallah, an edtech unicorn, has received approval from the Securities and Exchange Board of India (SEBI) for its pre-IPO draft filing, clearing a significant regulatory hurdle on its way to public markets.

The Noida-based company submitted its draft in March of this year via the confidential SEBI route. By raising about Rs 4,600 crore (about $533 million) through a combination of new issuance and an offer for sale, PhysicsWallah will now join the ranks of innovative tech companies hoping to join the bourses in 2025.

Key Highlights

• PhysicsWallah becomes the first Indian edtech unicorn to receive SEBI nod for IPO via confidential route.
• Company plans a ₹4,600 crore IPO mix of fresh issue and offer-for-sale after draft filing. 

Supported by Lightspeed, WestBridge, Hornbill Capital, and GSV Ventures, PhysicsWallah has an estimated valuation of $2.8 billion. Additionally, it will be the first unicorn in the edtech space to be listed on a stock exchange.

In March, the company appointed three independent directors to its board in order to comply with public company standards and best practices. Last month, it also hired Satish Sharma as Chief Marketing Officer to help with its brand strategy and expansion plans.

Also Read: PhysicsWallah Appoints Former Blinkit Executive as the CFO of the Company

This year, PhysicsWallah also finished the process of becoming a public company, which is necessary in order to list on the Indian stock exchange. The action is a component of the company's broader institutionalization strategy as it gets ready for capital market participation and public scrutiny.

The company reported revenue of Rs 1,940.4 crore and a loss of Rs 375 crore in FY24, but it has not yet submitted its annual financial statements for FY25. With a strong emphasis on offline operations, the company anticipates making over Rs 1,000 crore from this market. Additionally, it plans to open more centers in both new and existing cities.

The edtech industry is currently having difficulty scaling and raising capital. However, PhysicsWallah's IPO will be a watershed moment for the Indian edtech sector, potentially opening the door for more tech startups to test the public markets.