PhysicsWallah Postpones Direct Lending Plan Amid Recent Funding Boost

PhysicsWallah Abandons Direct Lending Plans, Partners with Regulated NBFCs

PhysicsWallah, the edtech company, has reversed its plans to directly lend to students and will instead partner with regulated non-banking financial companies (NBFCs) to offer education loans. The move comes just weeks after the IPO-bound company announced an investment of around Rs 120 crore in its wholly owned subsidiary FinZ Finance Private Limited.

According to an exchange filing on June 4, PhysicsWallah is restructuring its lending strategy and has tied up with multiple regulated third-party NBFCs to cater to student financing needs. The revised approach aims to materially reduce balance sheet and credit-related risks. The company stated that it will continue to work as a technology platform, connecting its students to a curated list of regulated lending partners based on students' learning lifecycle and academic outcome journey.

The Noida-based firm believes that the new model will improve affordability and accessibility while making its financing offering more scalable and enabling deeper penetration within its student ecosystem. PhysicsWallah also announced that the future strategic direction of FinZ Finance will be decided at a later stage, subject to board and regulatory approvals.

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Co-founder Prateek Maheshwari commented on the decision, stating that the company had received feedback that its core strengths lie in building learning communities and operating its education platform, while lending activities are better handled by regulated financial institutions with established underwriting capabilities. Maheshwari emphasized that prudent capital allocation and shareholder value remain the company's foremost priority.

The decision marks a significant shift from PhysicsWallah's earlier plans to build lending capabilities through FinZ Finance and suggests the company is opting for an asset-light marketplace model rather than taking direct credit exposure on its balance sheet. This move comes against the backdrop of heightened scrutiny of education financing models in India, where several edtech companies have partnered with lenders to offer financing and EMI-based payment plans for courses.

Financial Performance

In a recent filing, PhysicsWallah reported a sharp improvement in its financial performance for the March quarter. Key highlights include:

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The company posted a 51 percent year-on-year rise in revenue from operations to Rs 919 crore in Q4 FY26, while net loss narrowed 76 percent to Rs 69 crore from Rs 289 crore a year earlier. For FY26, revenue rose 35 percent to around Rs 3,900 crore, while annual losses narrowed significantly to Rs 24 crore.