Funding · Education & Skilling

PhysicsWallah infuses ₹120 Cr into NBFC arm FinZ

What they do

PhysicsWallah runs an online and offline platform preparing students for 35+ exam categories

It approved a ₹120 Cr capital infusion into its wholly owned NBFC FinZ Finance to expand education loan access

The company also reported a 90% net loss cut to ₹24.2 Cr in FY26 and expects PAT-level profitability in FY27

PhysicsWallah approved a ₹120 Cr capital infusion into its wholly owned NBFC arm FinZ Finance.
FinZ Finance received its NBFC licence in September 2025 and started operations in March 2026.
Before the licence, FinZ had been operating for nearly two years through external lending partnerships.
PhysicsWallah has disbursed education loans of over ₹200 Cr in the past two years.
70% of these loans went to PhysicsWallah students and 30% to external learners.
The loans are small-duration, typically less than one year, and NPAs are below 1%.
PhysicsWallah does not plan to deploy significant additional capital into FinZ despite loans on its balance sheet.

BYJU'S aggressive use of third-party lenders for education loans led to regulatory scrutiny and customer backlash, highlighting the risk of such models.
Anand Rathi analyst Atul Thakkar said PhysicsWallah's course diversification reduces risks of a large offline network dependent on few exam categories.
Thakkar noted FinZ could become a meaningful monetisation lever at 10-12% loan penetration over 2-3 years.
He also said PhysicsWallah has a structural underwriting advantage because borrowers are enrolled students whose repayment behaviour correlates with course completion.

PhysicsWallah prepares students for 35+ exam categories including JEE, NEET, UPSC, state boards, K-8, commerce, finance, skills, and study abroad.
It offers tech-enabled offline centres called Vidyapeeth and Pathshala in 175+ cities.
The platform claims 10 Million+ tests, sample papers, and notes, and 100+ offline centres.
In FY26, offline revenue grew 31% YoY to ₹1,774 Cr, contributing 45% of total operating revenue.
Online business revenue grew 39% YoY to ₹1,954 Cr in FY26.
State board programmes revenue surged 9X YoY in FY26.
Curious Junior (K-8 platform) revenue grew 4X in FY26.
School integration partnerships (SIPs) revenue tripled during FY26.
Offline centre count increased to 353 from 198 at the end of FY25.
Nearly 60% of Vidyapeeth centres are profitable; centres opened in 2023 and 2024 turned EBITDA positive.
Offline EBITDA margins improved to -10% in FY26 from -19% in FY25.

Management expects overall revenue to grow 30% in FY27.
It expects 2X increase in pre-Ind AS EBITDA in FY27.
Management expects the offline business to turn profitable at group level in FY27.
Prateek Boob is confident of achieving PAT-level profitability in FY27.
PhysicsWallah does not intend to deploy significant capital into FinZ despite loans on its balance sheet.