PhysicsWallah's FinZ Transfers ₹95.79 Crore Loan Portfolio to Auxilo
PhysicsWallah's subsidiary FinZ Finance sells a significant loan book to Auxilo Finserve, marking a strategic shift in its lending approach.
FinZ Finance sells a loan portfolio worth ₹95.79 crore to Auxilo Finserve.
This transaction represents a major part of FinZ's total loan book.
PhysicsWallah's revenue from operations increased by 24.4% year-on-year.
PhysicsWallah, the prominent edtech unicorn, is adjusting its student lending strategy once again. Its subsidiary, FinZ Finance, has announced the sale of a loan portfolio valued at ₹95.79 crore to Auxilo Finserve, a non-banking financial company (NBFC) registered with the Reserve Bank of India. This transaction is significant as it constitutes a large portion of FinZ's overall loan book, indicating a pivotal change in PhysicsWallah's approach to student financing.
Previously, PhysicsWallah had established FinZ Finance as its internal lending arm, intending to provide loans directly to students. However, the company has since revised its strategy, opting to collaborate with third-party NBFCs for student loans rather than managing all lending risks internally. This shift comes in response to mixed market reactions regarding the viability of PhysicsWallah's initial lending plans, as investors expressed concerns about the capital demands and risks involved in developing an in-house lending operation.
FinZ Finance obtained its NBFC license in September 2025 and commenced operations in February 2026, primarily catering to PhysicsWallah's student clientele. The recent sale to Auxilo Finserve is seen as a strategic move to mitigate risks associated with direct lending while still providing financial support to students through established partners.
In its latest financial report, PhysicsWallah revealed a 24.4% increase in operational revenue, reaching ₹1,054 crore in the first quarter of FY27. The company also reported a reduction in net losses by 30.7%, amounting to ₹88 crore. Notably, its online business segment grew by 33.3%, contributing ₹549 crore, while offline revenue increased by 14.5%, totaling ₹490 crore during the same period.
Following the announcement of this loan portfolio sale, PhysicsWallah's stock experienced a surge, rising over 6% on Monday. As of 2:46 PM, shares were trading at ₹128.1, leading to a market capitalization of approximately ₹37,812 crore. This positive market response reflects investor confidence in the company's strategic adjustments and its ongoing growth trajectory.
