Author: SevenFeeds Editorial
Published: November 2025
Category: IPO Analysis / Indian Startups
Reading Time: 6 min
- The PhysicsWallah IPO saw 0% QIB participation on Day 1.
- Retail investors showed early interest despite a falling GMP.
- Founders claim profitability and discipline, not hype, drive growth.
- Experts warn of valuation risks as edtech funding cools in 2025.
- Retail traders must watch post-listing momentum, not pre-IPO noise.
The PhysicsWallah IPO: A Reality Check for Edtech’s Favorite Unicorn
The PhysicsWallah IPO opened in November 2025 with plenty of buzz but mixed reactions. Despite being one of India’s most talked-about education startups, Qualified Institutional Buyers (QIBs) showed zero participation in early rounds, according to the Times of India.
Retail investors, on the other hand, showed up in droves. Many small traders and long-time students of PW’s affordable courses rushed to subscribe on Day 1. But the absence of institutional demand told a bigger story — the PhysicsWallah IPO wasn’t being treated as a quick profit play.
Retail Euphoria vs. Institutional Caution in the PhysicsWallah IPO
Here’s what the numbers revealed by LiveMint show:
| Category | Subscription (Day 2) | Sentiment |
|---|---|---|
| QIB (Institutions) | 0% | Cautious |
| HNI / NII | 12% | Mild interest |
| Retail Investors | 65% | Enthusiastic |
| GMP (Grey Market Premium) | ₹14 → ₹5 | Declining |
The GMP decline reflected fading short-term optimism, despite strong brand recognition.
While institutions stayed away, retailers viewed PhysicsWallah as “India’s Byju’s done right” — lean, profitable, and rooted in Bharat rather than elite metros.
However, the lack of institutional support could cap post-listing momentum. Typically, IPOs with <25% QIB interest struggle to sustain premiums beyond the first week.
What Makes PhysicsWallah Different
PhysicsWallah (PW), founded by Alakh Pandey and Prateek Maheshwari, disrupted India’s test prep market by offering affordable education for the masses.
Here’s how PW stacks up against competitors:
| Brand | Focus | Average Course Fee | Profitability Status |
|---|---|---|---|
| PhysicsWallah | Affordable test prep | ₹4,000–₹12,000 | Loss-making |
| BYJU’S | Premium learning app | ₹15,000–₹40,000 | Loss-making |
| Unacademy | Mixed (online + offline) | ₹10,000–₹25,000 | Loss-making |
PW’s IPO pitch leaned heavily on its bootstrapped origin story, operational discipline, and offline expansion strategy (100+ centers).
But as per Moneycontrol’s coverage, investors questioned whether this model can scale sustainably while maintaining margins in a tightening edtech market.
Tweet Spotlight
“Retail investors love PhysicsWallah for its brand story, not its balance sheet. Institutions love neither.”
— @FinTrendsIndia, Nov 2025
When Fundamentals Meet Market Sentiment
As someone who’s tracked over 80 Indian IPOs since 2015, here’s what stands out:
The PhysicsWallah IPO didn’t fail because of weak business fundamentals — it struggled because investor psychology has shifted post-2023.
After the Zomato and Paytm IPO hangovers, institutional investors now demand clear profit visibility. Retail traders, however, still chase brand trust and affordability.
This mismatch creates volatility — and that’s where informed investors find opportunity.
The Edtech Funding Crunch: Context Matters
According to Tracxn, funding in Indian edtech startups dropped by 68% year-on-year in 2024. Global investors pulled back, waiting for clearer signals of profitability.
So while PhysicsWallah stands tall as one of the few profitable edtechs, market timing may have worked against it. Analysts at LiveMint noted that even anchor investors hesitated, citing valuation fatigue and overall risk aversion.
Still, this IPO marks a turning point for India’s startup public market — the shift from growth at all costs to profits before pride.
Challenges and Opportunities Ahead
Roadblocks:
- Shrinking edtech valuations across the board.
- Retail-driven listings tend to be volatile.
- Rising CAC (Customer Acquisition Cost) as offline expansion accelerates.
Opportunities:
- Strong brand trust among Tier-2 and Tier-3 students.
- Lean operational model compared to peers.
- Rapid offline rollout gives long-term stability.
In short, PhysicsWallah might not excite traders, but it earns investor respect for discipline — a quality that was missing in India’s last edtech boom.
Future Outlook: What Happens After Listing
Expect near-term price swings driven by retail sentiment and possible post-listing corrections if institutions stay away.
But over 12–18 months, the IPO could mature into a case study in sustainable public listing — much like Nykaa, which stabilized post volatility.
If PhysicsWallah can maintain growth while keeping costs low, it may become India’s first truly mass-market education stock.
TL;DR Recap
- Big investors stayed cautious, but retailers backed belief.
- Profitability > hype is the new market mantra.
- Falling GMP doesn’t equal failure — it signals realism.
- PhysicsWallah’s model could redefine post-Byju’s edtech narratives.
- Future potential depends on execution, not emotion.
FAQs About PhysicsWallah IPO
WHO WE ARE
We’re SevenFeeds, a content-driven platform decoding India’s startup ecosystem, IPOs, and tech trends. Our goal is to simplify complex business shifts for smart readers who want facts — not hype.
Follow us on X (Twitter), LinkedIn, or subscribe for weekly insights on Indian startups and markets.
References & Sources
If you’re tracking Indian IPOs or planning your first retail investment, subscribe to our free checklist:
“10 Things to Check Before Investing in a Startup IPO.”
Stay ahead of the curve — not behind the hype.
