loading
loading
Edtech unicorn PhysicsWallah (PW) appears to be changing its approach to student lending yet again. Its wholly owned subsidiary FinZ Finance has agreed to sell, transfer and assign a loan portfolio worth Rs 95.79 crore to RBI-registered NBFC Auxilo Finserve, as per the stock exchange disclosure. The portfolio accounts for a substantial part of FinZ Finance’s total loan book, making the transaction significant for PW’s lending strategy. The move comes after PhysicsWallah had positioned FinZ Finance as its in-house lending arm. The company had earlier said that FinZ would allow it to provide loans to students from its own books. However, PW later shifted its approach and said it would work with third-party NBFCs to facilitate loans for its students instead of taking the entire lending exposure on its own balance sheet. The change in strategy also comes against the backdrop of a mixed market response to PW’s earlier lending plans. Investors had raised questions around the capital requirements and risks associated with building an in-house lending business, when lending was not the company’s core business. FinZ Finance received its NBFC licence in September 2025 and started operations in February 2026. A large portion of its lending was linked to PW’s student base. PhysicsWallah reported a 24.4% year-on-year rise in revenue from operations to Rs 1,054 crore in Q1 FY27, while its net loss narrowed 30.7% to Rs 88 crore. The company’s online business grew 33.3% to Rs 549 crore, while offline revenue rose 14.5% to Rs 490 crore during the quarter. Following the development, PhysicsWallah’s share price rose more than 6% on Monday. The stock was trading at Rs 128.1 as of 2:46 PM, giving the company a market capitalisation of around Rs 37,812 crore.
document fetched 2026-10-06 02:57