In a filing on June 4, the company said it will now tie up with third-party non-banking financial companies (NBFCs) instead of lending through its books, as had been envisaged with the FinZ infusion. The edtech will henceforth work as a technology platform that connects its students to a curated list of regulated lending partners.
Focusing on core competencies
PhysicsWallah said it had reached the decision after holding “discussions” with partners. “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,” cofounder Prateek Maheshwari said in the stock exchange filing on Thursday.
The edtech had first outlined its plans to venture into lending in its draft red herring prospectus.
PhysicsWallah also said that FinZ Finance had received an NBFC license from the Reserve Bank of India last September. FinZ Finance operates across leasing, hire purchase, and financing services.
The company’s move to revamp its lending business comes just a week after it revised its K-12 and offline strategies. Earlier this week, ET reported that PhysicsWallah, which listed on India’s stock exchanges last November, was reworking its K-12 school business after public market investors raised concerns over the extent of its involvement in capital-intensive operations.
Financial performance
On May 27, the company reported a 50% year-on-year (YoY) rise in operating revenue to Rs 919 crore for the quarter ended March 31. However, it sank to a loss of Rs 69 crore, from a net profit of Rs 102.3 crore in Q3 FY26. For the same period in FY25, PhysicsWallah had reported a loss of Rs 289 crore.
PhysicsWallah’s stock, which fell more than 11% in four days following its Q4 results, was up 10% as of 11 am today. The company had also informed exchanges about the Rs 120 crore infusion in FinZ Finance on the day it reported its Q4 results.