PhysicsWallah sells ₹95.8 cr loan portfolio, partially shuts lending ops
The sale to Auxilo Finserve forms part of a strategic realignment under which PhysicsWallah plans to shift lending activities to established third-party NBFCs
Edtech company PhysicsWallah has entered into a deal to sell a ₹95.79 crore loan portfolio to Auxilo Finserve, as it retreats from direct student lending. The transaction, which was finalized on October 3, will see FinZ Finance, the wholly owned subsidiary of PhysicsWallah, transferring the loans and associated borrowers to Auxilo Finserve, an RBI-registered NBFC.
The portfolio constitutes a significant portion of FinZ's loan book. PhysicsWallah's cofounder Prateek Maheshwari announced the reversal of the lending strategy in June, citing feedback from partners that the company should focus on its education business and leave lending to established NBFCs. The sale is part of a broader strategic realignment aimed at optimizing capital allocation and reducing balance sheet exposure and credit risks.
FinZ was founded in 2026 and reported negligible operating revenue and ₹1.35 crore in other income in FY26, representing 0.04% of PhysicsWallah's total income. Its net worth stood at ₹60.3 crore as of March 31, accounting for 1.18% of PhysicsWallah's net worth.
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