Indian edtech firm PhysicsWallah jumps 49% in trading debut, valued at $5.2 billion
FILE PHOTO: People talk inside the National Stock Exchange (NSE) in Mumbai, India, August 14, 2025. REUTERS/Francis Mascarenhas/File Photo
Shares of Indian edtech firm PhysicsWallah soared as much as 48.6 per cent in their trading debut on Tuesday, notching a $5.2 billion valuation and signaling renewed interest in a sector that has been under financial strain.
It is the first edtech firm to go public after the sector saw Byju's - valued at $22 billion at its peak - going into bankruptcy and players such as Unacademy struggling with layoffs.
PhysicsWallah's shares rose to as much as 161.99 rupees as of 11:24 a.m. IST in Mumbai, against their IPO issue price of 109 rupees. India's broader markets inched lower.
India's IPO market is headed for record fundraising in 2025, with over 300 companies raising $16.6 billion so far this year, data compiled by LSEG showed.
The listing "underscores renewed investor interest in the edtech sector, which has struggled in recent years," Aishvarya Dadheech, founder of Fident Asset Management, said. "That, along with the company’s sustained revenue growth and strong outlook, is lifting the shares today."
PhysicsWallah had targeted a valuation of $3.19 billion from its $393 million IPO, which garnered bids worth $414 million, excluding anchor investors' bids.
Founded as a YouTube channel in 2016, the company runs online and brick-and-mortar coaching centres, and is one of India's largest edtech firms by the number of students.
The firm posted 50 per cent revenue growth in the financial year ended March, with losses narrowing to 2.4 billion rupees ($27.07 million) from 11.3 billion rupees in the previous fiscal.
PhysicsWallah's valuation exceeds that of its unlisted peers such as Temasek-backed upGrad, which was last valued at $2.25 billion and SoftBank-backed Unacademy, valued at $3.44 billion.
The trading debut is the latest in a string of strong one by firms such as online brokerage Groww and payment solutions company Pine Labs.
($1 = 88.6450 Indian rupees)
