A unit of the Income Tax (IT) Department has sent a tax demand notice to PhysicsWallah (PW) for a sum of INR 263.3 crore. The business announced the ruling in a filing with the stock market, citing Section 143(3) of the Income Tax Act as the basis for the decision. Investments received in 2023–24 (AY24), including those from SEBI-registered Category II AIFs, were considered taxable income by the tax department. The tax order will be challenged by PW. According to the edtech, there are solid legal and factual reasons to appeal to the relevant appellate body, based on the company's initial evaluation.
PW’s Strong Performance in the Market
In November 2025, PW became public, just so you know. An offer for sale (OFS) component of up to INR 380 Cr and a fresh issue of shares worth INR 3,100 Cr made up the public issue of the EdTech company. During the initial public offering (IPO), Prateek Boob (Maheshwari) and Alakh Pandey, two of its co-founders, sold shares valued at INR 190 each. The privately held educational technology firm garnered about $490 million from backers including Lightspeed, Goldman Sachs, WestBridge Capital, and Fidelity.
Although it received its greatest payment of $210 million in September 2024, it became a unicorn in 2022 after raising $100 million in its Series A round. A month prior to this, the business announced solid financial results for the third quarter of FY26. Operating revenue for the period under review increased by 34% year-on-year to 1,082.4 Cr INR, while PW's net profit increased by 33% year-on-year to 102.3 Cr INR.
PW Expanding its Footprints
From an operational standpoint, PW's paid user base continued to expand in both online and offline segments, growing 21% year-over-year to 43.7 lakh. In addition to its traditional test prep business, the company is branching out into the K-12 market with the goal of creating a comprehensive platform for early learning in schools.
To reach this demographic, it is funding its own educational institutions, forming strategic alliances with other organisations, and developing online learning goods. The change is a result of the company's efforts to engage students early in their learning journey in order to develop a longer-term pipeline, as growth in its core exam preparation categories starts to decline.
|
Quick Shots |
|
•PhysicsWallah receives INR 263.3 •Notice issued under Section 143(3) •Tax authorities classify certain •Company plans to challenge the |
Original Article
(Disclaimer – This post is auto-fetched from publicly available RSS feeds. Original source: Startuptalky. All rights belong to the respective publisher.)
