Noida-based edtech unicorn PhysicsWallah has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) through a confidential pre-filing route. This approach allows the company to withhold public disclosure of certain details. While the filing does not guarantee an IPO, it offers PhysicsWallah greater flexibility regarding issue size and timelines.
Noida-based edtech unicorn PhysicsWallah, a prominent online and offline learning platform, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) through a confidential pre-filing route. This method allows the company to withhold public disclosure of IPO details at this stage.
PhysicsWallah, founded in 2020, is a leading education technology company known for its affordable and accessible learning solutions across India. The company operates in online, offline, and hybrid modes, covering 98% of Indian pin codes. Over the years, it has gained a strong foothold in competitive exam preparation, catering primarily to students preparing for engineering and medical entrance exams.
IPO Plans with a Confidential Pre-Filing Approach
In an official statement, PhysicsWallah confirmed submitting its pre-DRHP under SEBI’s Issue of Capital and Disclosure Requirements (ICDR) Regulations. However, it also clarified that the pre-filing does not ensure a final IPO launch.
Unlike the traditional IPO route, where companies must launch the public offering within 12 months of SEBI’s approval, the confidential filing method provides up to 18 months from the date of SEBI’s final observations. This route also allows companies to adjust the primary issue size by 50% until the Updated Draft Red Herring Prospectus (UDRHP) stage.
Growing Valuation and Recent Funding
In September 2024, PhysicsWallah raised $210 million in a funding round led by Hornbill Capital, boosting its valuation to $2.8 billion, 2.5 times higher than its previous valuation. This growth indicates strong investor confidence in the company’s expansion strategy.
PhysicsWallah joins a select group of companies using the confidential IPO filing route. Previously, firms like Swiggy and Vishal Mega Mart successfully launched their IPOs after making similar filings. However, some companies, like OYO and Tata Play, opted for this route but did not proceed with their public offerings.
What Lies Ahead?
With its confidential pre-filing, PhysicsWallah now has the flexibility to assess market conditions before making a final decision on its IPO. If it proceeds, the company will likely use the funds to expand its educational services, enhance technology, and grow its offline learning centers across India.
Investors and market analysts will be closely watching PhysicsWallah’s next steps as it moves towards a potential public listing.
