
PhysicsWallah has announced a shift in its approach to student financing, choosing to work with regulated non-banking financial companies (NBFCs) instead of taking a direct lending route.
The company said the revised framework is designed to lower financial risks while continuing to support affordable education financing for learners.
The edtech company stated that it will function as a technology-enabled platform connecting students with selected regulated lending institutions.
Under the new arrangement, financing decisions will be facilitated through 3rd-party NBFC partners based on factors such as a student's academic journey and learning lifecycle.
The move marks a departure from the company's earlier strategy and is expected to materially reduce balance sheet exposure and credit-related risks.
PhysicsWallah said the revised structure will also help make student financing more scalable, accessible and capable of reaching a wider learner base.
The announcement follows PhysicsWallah's recent investment of approximately ₹120 crore through an equity infusion into its wholly-owned subsidiary, FinZ Finance Private Limited.
While the company has altered its lending strategy, it noted that the future direction of FinZ Finance will be determined at a later stage.
Any decision regarding the subsidiary's long-term role will be taken in the near future based on internal evaluations.
As per the exchange filings, Prateek Maheshwari, Co-founder of PhysicsWallah, said, "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."
The company believes the revised structure will allow it to concentrate on its core education platform while leveraging the expertise of established lending institutions for financing services.
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As of 04 June 2026, at 12:20 PM, PhysicsWallah share price is trading at ₹105.65 per share, reflecting a surge of 14.79% from the previous closing price.
By moving to a partnership-based lending model, PhysicsWallah is seeking to reduce financial risk while continuing to facilitate access to education financing. The company expects the approach to improve scalability and strengthen its focus on core edtech operations.
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Published on: Jun 4, 2026, 1:09 PM IST

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