EdTech firm PhysicsWallah backs FinZ Finance growth

By Parth Prabhudesai

EdTech company PhysicsWallah will invest around $12 million in its wholly owned NBFC subsidiary FinZ Finance as it expands its presence in the FinTech-enabled education lending space.

The company said its audit committee has approved the investment through a rights issue. PhysicsWallah will subscribe to up to 2.67 crore fully paid-up equity shares of FinZ Finance with a face value of ₹10 each at a premium of ₹35 per share.

FinZ Finance, which operates in the financial services sector, received its non-banking financial company (NBFC) licence from the Reserve Bank of India in September 2025 and began operations in March 2026.

The proposed capital infusion will be used to strengthen FinZ Finance’s working capital base and support the expansion of its lending operations, PhysicsWallah said in a regulatory filing.

During its post-results analyst call, the company’s management said FinZ primarily offers short-duration education loans to students, with nearly 70-75% of loans being extended to learners already enrolled on the PhysicsWallah platform.

The move highlights the growing convergence of EdTech and FinTech in India, where digital education platforms are increasingly entering financial services to improve student access to affordable credit and strengthen user retention.

Incorporated in July 2024, FinZ Finance is engaged in leasing, hire purchase and financing activities for consumers, individuals and corporates. According to the filing, the company reported a turnover of ₹0.1 lakh in FY26.

The transaction will be completed in cash and will not change PhysicsWallah’s ownership in FinZ Finance, which will remain a wholly owned subsidiary.