PhysicsWallah to exit student financing biz, ties up with NBFCs instead

Edtech firm PhysicsWallah on Thursday said it plans to exit from the business of direct financing for students and instead partner with NBFCs for education loans.

The move comes after a recent announcement wherein the company said it will invest ₹120 crore through an equity-infusion in its fully-owned subsidiary FinZ Finance Private Limited.

"Physicswallah Limited wishes to inform the exchanges that it is restructuring its lending strategy and has tied up with multiple leading regulated third-party NBFCs to enable student lending needs. This decision reverses the company's earlier approach and is intended to materially reduce balance sheet and credit related risks for the company," the company said.

 

PW said strategic direction for FinZ Finance will be decided in the near future subject to the board and other regulatory approvals 

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"We received feedback from our partners that our core strength lies in building communities and our online business. Our lending business is best left to regulated third-party NBFCs who have created robust underwriting capabilities.

"We truly believe that prudent capital allocation and shareholder value remains our foremost priority and in light of the feedback received from our partners to the said announcement, we have exercised our fiduciary responsibility to revisit this decision and enable student lending through regulated third-party NBFCs," PW Co-founder Prateek Maheshwari said.

Sources aware of the development said that the company is evaluating multiple option around FinZ Finance including its sale or surrender of licence. 

The company recently reported a narrowing of consolidated loss to ₹69.14 crore in the fourth quarter ended March 31, 2026 due to increase in enrolments and average revenue per person from a loss of ₹289.27 crore in the same period a year ago.

Revenue from operations increased by about 51 per cent to ₹918.8 crore during the quarter from ₹609.6 crore in March 2025 quarter.

The loss in FY26 narrowed to ₹24.17 crore from ₹243.26 crore in FY25.

"We will continue to work as a technology platform that connects PW's students to a curated list of regulated lending partners, based on students' learning lifecycle and academic outcome journey of such students. PW will continue to enable affordability and accessibility, and make it more scalable, robust and capable of deeper penetration into the student ecosystem," the filing said.