Venture capital firm Lightspeed Venture Partners has fully exited its investment in Indian edtech major PhysicsWallah by selling 4.67 crore shares for ₹549.7 crore. The sale comes amid mixed stock performance and ongoing efforts by PhysicsWallah to trim losses and grow revenue after its public listing in November 2025.
- Lightspeed exits entire 1.61% stake in PhysicsWallah for ₹549.7 Cr
- ICICI Prudential and Goldman Sachs among leading buyers
- PhysicsWallah posts narrowing losses but stock down 12% post-IPO
What happened
Lightspeed Venture Partners completed its exit from the Indian edtech company PhysicsWallah by selling all 4.67 crore shares it held, valued at ₹549.7 crore. The shares were sold through block and bulk deals at a weighted average price slightly below the market close, marking Lightspeed’s full withdrawal from the firm.
The largest buyer was ICICI Prudential Mutual Fund, acquiring nearly half of the sold volume, with other notable participants including Goldman Sachs, Ghisallo Master Fund, Societe Generale, and Morgan Stanley Asia. Lightspeed had originally invested during the company’s $210 million Series B round in September 2024.
Why it matters
PhysicsWallah’s journey since its public listing has been volatile, with the stock trading 12% below its IPO opening price and touching lows amid ongoing operational losses. Despite robust topline growth of 35% year over year in FY26, the company has yet to reach net profitability, though it has significantly reduced its net loss by 90%.
The sale underscores a shift in investor sentiment as early backers realize returns or recalibrate exposure. Lightspeed’s exit may also reflect the broader challenges facing edtech firms in India, particularly those navigating profitability pressures post-IPO amid external disruptions such as the postponement of the NEET UG exam that impacted core online revenue segments.
What to watch next
With Lightspeed and other institutional investors paring down stakes, market watchers will track how fresh capital and new shareholders influence PhysicsWallah’s strategic priorities and expansion path. Continued focus on reducing losses and driving sustainable EBITDA growth will be key to restoring investor confidence.
The company’s ability to manage exam-related and regulatory challenges impacting its online education business will also determine near-term revenue momentum. Upcoming quarterly results and share price movements will be important indicators of how PhysicsWallah adapts to the evolving edtech landscape in India.