Students threatening teachers to falling ceiling fans: PhysicsWallah DRHP reveals 5 unique threats to its business

PhysicsWallah, the ed-tech unicorn preparing a Rs 3,820 crore IPO, is entering the public market at a time when India’s online learning sector is under scrutiny. Backed by WestBridge and Hornbill Capital, the company plans to use proceeds to expand its offline centres, improve technology, and fund acquisitions.

Founded by Alakh Pandey, the platform has grown rapidly, reporting a 49% rise in revenue to Rs 2,887 crore in FY25 while narrowing its losses.

Unlike peers Byju’s, Unacademy, and Vedantu, which are grappling with layoffs and liquidity issues, PhysicsWallah is pitching itself as a leaner, profitable alternative. But its draft filings also highlight several risks.

Student safety and misconduct incidents

The company has faced allegations of harassment and misconduct at its offline centres. In 2023, a viral video showed staff pushing students, while another incident involved a student threatening a teacher over a video call. More seriously, a ceiling fan fell on a student in New Delhi, leading to an FIR against an employee. Such incidents expose the firm to legal liability and reputational damage.

Intellectual property risks

PhysicsWallah admits its study material could be plagiarized or accused of plagiarism. In an industry where credibility and originality are critical, even allegations can undermine brand trust and lead to legal costs.

Leadership concerns

The company’s founder and CEO, Alakh Pandey, does not hold a formal higher educational degree. While his popularity among students has driven growth, the lack of formal credentials could attract regulatory or governance scrutiny as the company scales.

Exposure to external shocks

Like other businesses, PhysicsWallah acknowledges its vulnerability to natural disasters, fires, pandemics, or civil unrest. The COVID-19 pandemic highlighted how quickly demand patterns can shift for ed-tech players.

The bigger test

As PhysicsWallah seeks to convince public investors of its growth story, these risks underline the challenge of balancing rapid expansion with operational discipline. The firm may have defied the downturn that hit its peers, but its IPO documents show that even India’s brightest edtech star must contend with threats that go beyond financials.

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