Think Investments Bets Rs 136 Crore on PhysicsWallah Ahead of IPO
Global investment firm Think Investments has acquired a 0.41% stake in edtech unicorn PhysicsWallah for approximately Rs 136 crore in a secondary share transaction. The deal was completed on November 4, just days before PhysicsWallah’s Rs 3,480-crore IPO opens on November 11.
Key Investment Details
- Stake Acquired: 0.41% in PhysicsWallah
- Investment Amount: Rs 136 crore
- Transaction Type: Secondary share purchase from employees
- Share Price: Rs 127 per share (17% premium to IPO upper band)
Think Investments purchased 10.72 million shares from 14 PhysicsWallah employees at Rs 127 apiece—significantly higher than the IPO’s upper price band of Rs 109 per share. This premium pricing indicates strong investor confidence in the Noida-based test preparation platform.
IPO Valuation and Company Growth
At the upper end of its IPO price band (Rs 103-109), PhysicsWallah will command a valuation of Rs 31,500 crore (approximately $3.6 billion). This represents a substantial 30% increase from its last funding round in September 2024, when the company raised $210 million led by Hornbill Capital and Lightspeed.
Think Investments, known for backing technology-driven ventures, includes prominent Indian startups like Dream11, Swiggy, Spinny, FirstCry, Chaayos, and Pharmeasy in its portfolio.
Capital Utilization and Ownership Structure
A significant portion of the Rs 3,100 crore fresh capital that PhysicsWallah plans to raise through the IPO will be deployed for offline expansion and marketing initiatives.
As of the RHP date, the ownership structure shows co-founders Alakh Pandey and Prateek Maheshwari each holding 40.31% stake. Other major shareholders include WestBridge Capital (7.8%), Hornbill Capital (4.41%), GSV Ventures (2.85%), and Lightspeed (1.79%). Notably, none of the early investors are selling their stakes in the IPO.
