Overview
- The company announced Thursday that it will stop originating student loans from its books and instead act as a technology platform that connects students to a curated set of regulated third‑party NBFCs.
- The reversal follows an earlier decision to inject Rs 120 crore into FinZ Finance, a wholly owned NBFC subsidiary, which had raised shareholder concern about underwriting, balance‑sheet and regulatory risks.
- Investors reacted positively to the change, sending PhysicsWallah shares up roughly 17.8–18% intraday on the exchange filing.
- FinZ Finance remains a wholly owned subsidiary but its future strategic role and any capital deployment will be decided by the board and require regulatory approvals.
- The shift reflects wider caution in Indian edtech after past loan‑related troubles and aims to preserve student access to affordable finance while limiting PhysicsWallah's direct credit and regulatory exposure.