PhysicsWallah Adjusts Student Lending Strategy with FinZ Finance

PhysicsWallah (PW), the edtech unicorn, is revisiting its strategy for student lending. Its subsidiary, FinZ Finance, has entered into an agreement to sell, transfer, and assign a loan portfolio valued at Rs 95.79 crore to Auxilo Finserve, an NBFC registered with the RBI, as disclosed in the stock exchange.

This portfolio represents a significant portion of FinZ Finance’s overall loan book, thereby making this transaction an important aspect of PW’s lending strategy. Initially, PhysicsWallah had established FinZ Finance as its proprietary lending division, intending to provide loans directly to students from its own resources.

However, PW has since altered its course, opting to collaborate with external NBFCs for facilitating student loans rather than carrying the entire lending risk on its own balance sheet. This change comes in the wake of varied market reactions to PW’s previous lending initiatives, with investors expressing concerns regarding capital needs and risks tied to creating an internal lending business, especially since lending is not the company’s primary focus.

FinZ Finance was granted its NBFC licence in September 2025 and commenced operations in February 2026, with a considerable share of its lending directed at the PW student cohort. In the first quarter of FY27, PhysicsWallah reported a 24.4% increase in operational revenue, reaching Rs 1,054 crore, and saw its net loss decrease by 30.7% to Rs 88 crore. Online business grew by 33.3% to Rs 549 crore, while offline revenue grew by 14.5% to Rs 490 crore during the same period.

Following this announcement, PhysicsWallah’s share price surged by more than 6% on Monday, trading at Rs 128.1 at 2:46 PM, which places the company’s market capitalisation at approximately Rs 37,812 crore.