PhysicsWallah’s subsidiary FinZ Finance is set to sell a ₹95.79 crore loan portfolio to Auxilo Finserve, marking a strategic retreat from in-house student lending amidst rapid growth in its core education services.
PhysicsWallah is unwinding a significant part of its student-lending push, with its wholly owned subsidiary FinZ Finance agreeing to sell, transfer and assign a loan portfolio worth ₹95.79 crore to Auxilo Finserve, an RBI-registered non-banking financial company. According to a stock exchange disclosure reported by The Hindu BusinessLine, the assets being transferred account for a substantial share of FinZ’s loan book, underscoring how central the move is to the edtech group’s revised financing strategy.
The decision marks a clear shift from PhysicsWallah’s earlier plan to build lending capability inside the group. FinZ Finance had been set up as the company’s in-house lending arm, with the stated aim of extending loans to students directly from its own balance sheet. PhysicsWallah later changed course, saying it would work with third-party NBFCs to support student loans rather than carry the full credit exposure itself, a move that analysts and investors had questioned because lending is far from the company’s core education business.
Several reports said the transfer is expected to be completed within about 60 days and will leave FinZ with only a much smaller lending footprint, effectively scaling back or partially closing its direct loan operation. Business outlets including Financial Express, Business Standard and others said the group is seeking to reduce credit risk, lighten balance-sheet pressure and refocus on its main classroom and online education businesses through partnerships with established financiers.
The timing is notable because PhysicsWallah has been showing stronger operating momentum. The Hindu BusinessLine reported that revenue from operations rose 24.4 per cent year-on-year to ₹1,054 crore in the first quarter of FY27, while net loss narrowed 30.7 per cent to ₹88 crore. Online revenue increased 33.3 per cent to ₹549 crore, and offline revenue climbed 14.5 per cent to ₹490 crore, suggesting the company is trying to sharpen its core business even as it retreats from direct lending.
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