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India’s top edtech company PhysicsWallah is all set to go public via an Initial Public Offering (IPO) worth ₹4,600 crore. The listing of the company on the stock exchange is a big step for the company, as it is the first Indian edtech firm to be listed on the stock exchange. Here’s the basic rundown of what this means to the company, how much money just Line is going to raise, and what lays ahead for the technological giant.
PhysicsWallah has partnered with major investment banks
PhysicsWallah has filed for an IPO through the confidential pre-filing route. SEBI had introduced this method in 2022 which means the companies can submit the IPO documents without exposing the company's sensitive financial data to the public or the competitors.
● New shares will be issued to raise funds for business growth through Fresh Issue of Shares.
● Existing investors will be able to sell their shares through Offer for Sale (OFS).
PhysicsWallah has partnered with major investment banks such as Kotak Mahindra Capital, Axis Bank, JP Morgan and Goldman Sachs to handle the IPO process.
PhysicsWallah plans to raise ₹4,600 crore for various reasons:
Business Expansion
● The company is looking to expand its reach to India and the international markets.
● They promise to invest in technology that will help improve their educational platform and learning experiences.
Increasing Valuation
● The valuation of PhysicsWallah is $5 billion (₹42,800 crore), nearly double the valuation of $2.8 billion in September 2024.
Achieving Profitability
● FY24 was a loss making year for the company, with a loss of ₹1,130 crore.
● PhysicsWallah will use the funds to cover costs, improve efficiency and reach profitability by FY25.
Gaining Investor Trust
● Investors include Westbridge Capital, GSV Ventures, Lightspeed Venture Partners and Hornbill Capital, the company aims to attract more institutional investors through its IPO.
What are the Future Plans of PhysicsWallah?
PhysicsWallah’s IPO is a sign that it wants to grow and be the leader in the edtech industry. Continuing to produce 9,500 hours of educational material every week, the company aims to reach students in 18,808 pin codes in India. In addition to advanced technology, it is also investing in AI features, such as AI powered ones and personalized learning tools in order for the student experience to be improved. PhysicsWallah also plans to expand globally with the funds it raises and open up new international markets and provide other courses beyond test preparation. This will aid the company to grow its presence and offer better learning opportunities to the students.
Conclusion
PhysicsWallah’s ₹4,600 crore IPO could reshape India’s edtech industry. PhysicsWallah was working on its plans for an initial public offering. As per a report by Moneycontrol on September 21, 2024, at least ten investment institutions were asked to submit their proposals for handling the initial public offering (IPO). This means that PhysicsWallah wants to speed up the listing process. Earlier in September 2024, PhysicsWallah raised $210 million (Rs 1,750 crore) from a number of investors including Hornbill Capital. Other participants included GSV Ventures, WestBridge Capital and Lightspeed Venture Partners. In September 2024, the year of its last funding round, PhysicsWallah was valued at $2.8 billion (Rs 23,000 crore). The company had previously been valued at $1.1 billion (Rs 9,000 crore), but this was a 2.5 times rise after it raised $102 million (Rs 850 crore) from WestBridge Capital and GSV Ventures in its first investment round.
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