New Delhi, June 4: Edtech major PhysicsWallah (PW) has announced a significant change in its student financing approach, opting to discontinue direct lending operations and instead collaborate with regulated non-banking financial companies (NBFCs) to provide education loans.The decision follows the company’s earlier disclosure regarding a planned equity investment of Rs 120 crore in its wholly owned subsidiary, FinZ Finance Private Limited.
According to the company, the revised strategy is aimed at reducing exposure to credit-related and balance-sheet risks.In a regulatory filing, PhysicsWallah stated that it has entered into partnerships with several established NBFCs to facilitate financing solutions for students. The move marks a departure from its previous plan of directly engaging in lending activities.The future course of action for FinZ Finance will be determined in the coming months, subject to approvals from the company’s board and relevant regulatory authorities.
PW Co-founder Prateek Maheshwari said feedback from stakeholders indicated that the company’s strengths lie in education delivery, community building, and its digital platform rather than lending operations. He noted that specialized NBFCs possess stronger underwriting capabilities and are better equipped to manage loan portfolios.
Maheshwari added that the company remains focused on prudent capital deployment and enhancing shareholder value. Based on stakeholder feedback, PhysicsWallah decided to reassess its earlier lending plans and instead facilitate student financing through regulated lending partners.
Sources familiar with the matter indicated that the company is exploring various possibilities for FinZ Finance, including a potential sale of the subsidiary or surrendering its lending licence.On the financial front, PhysicsWallah reported a sharp improvement in profitability. Its consolidated net loss for the quarter ended March 31, 2026, narrowed to Rs 69.14 crore compared with Rs 289.27 crore in the corresponding period of the previous year.
The improvement was supported by higher student enrolments and increased average revenue per learner.Revenue from operations rose approximately 51 per cent year-on-year to Rs 918.8 crore during the quarter, up from Rs 609.6 crore in the same period last year.For the full financial year FY26, the company’s loss reduced significantly to Rs 24.17 crore from Rs 243.26 crore recorded in FY25.
The company said it will continue functioning as a technology-driven platform that connects students with a selected network of regulated lending institutions. Through this model, PhysicsWallah aims to improve affordability and accessibility of education financing while expanding its reach within the student ecosystem.
