Core Insights - Physics Wallah's IPO performance indicates a potential recovery in India's edtech sector, with shares closing 44% higher than the listing price [1] Company Overview - Physics Wallah's shares were priced at ₹109, reaching a high of ₹161.99 before closing at ₹156.49, resulting in a market valuation of ₹448 billion (approximately $5 billion) [2] - The company raised ₹34.8 billion (around $393 million) in its IPO, with ₹31 billion (approximately $350.1 million) from a fresh issue and ₹3.8 billion (roughly $42.9 million) from co-founders selling shares [3] - The company has evolved from a YouTube channel in 2016 to a significant player in the edtech industry, offering test-preparation and upskilling courses through various platforms [4] Industry Context - The success of Physics Wallah contrasts sharply with larger rivals like Byju's, which is facing a corporate-governance crisis, legal battles, and severe cash flow issues, leading to mass layoffs and insolvency proceedings [5] - Unacademy, another major player, has also reduced operations and is reportedly in acquisition talks, reflecting a significant decline from its previous valuation of $3.44 billion in 2021 [6] Financial Performance - In FY 2025, Physics Wallah reported a 49% increase in revenue to ₹28.9 billion (approximately $326 million) and a narrowed net loss of ₹2.4 billion (roughly $27.5 million) [7] - Online channels contributed 48.6% of operating revenue, while offline centers accounted for 46.8%, with the company boasting 4.5 million paying subscribers, a 23% increase from the previous year [7] Future Plans - The company intends to utilize the IPO proceeds primarily for expanding offline centers, enhancing its technology infrastructure, and pursuing potential acquisitions [8] - As of June 2025, Physics Wallah operates 303 centers across 152 cities in India and the Middle East, a significant increase from 182 centers the previous year [8]