PhysicsWallah’s FinZ Finance to Sell Rs 95.79 Crore Loan Portfolio to Auxilo
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Khushi Jain
- October 5, 2026
Edtech unicorn PhysicsWallah (PW) appears to be changing its approach to student lending again, with its wholly owned subsidiary FinZ Finance agreeing to sell, transfer and assign a loan portfolio worth Rs 95.79 crore to RBI-registered NBFC Auxilo Finserve, according to a stock exchange disclosure.
The portfolio accounts for a substantial portion of FinZ Finance’s total loan book, making the transaction significant for PhysicsWallah’s lending strategy.
The development comes after PhysicsWallah had positioned FinZ Finance as its in-house lending arm. The company had earlier said that FinZ would enable it to provide loans to students from its own books.
However, PW later changed its approach and said it would work with third-party NBFCs to facilitate loans for its students instead of taking the entire lending exposure on its own balance sheet.
The shift comes against the backdrop of a mixed market response to PhysicsWallah’s earlier lending plans. Investors had raised questions around the capital requirements and risks involved in building an in-house lending business when lending was not the company’s core business.
FinZ Finance received its NBFC licence in September 2025 and started operations in February 2026. A large portion of its lending was linked to PhysicsWallah’s student base.
PhysicsWallah Q1 FY27 Performance
PhysicsWallah reported a 24.4% year-on-year rise in revenue from operations to Rs 1,054 crore in Q1 FY27, while its net loss narrowed 30.7% to Rs 88 crore.
The company’s online business grew 33.3% to Rs 549 crore, while offline revenue rose 14.5% to Rs 490 crore during the quarter.
Following the development, PhysicsWallah’s share price rose more than 6% on Monday. The stock was trading at Rs 128.1 as of 2:46 PM, giving the company a market capitalisation of around Rs 37,812 crore.
FAQs
1. What loan portfolio is FinZ Finance selling?
FinZ Finance has agreed to sell, transfer and assign a loan portfolio worth Rs 95.79 crore to Auxilo Finserve.
2. Who is acquiring the FinZ Finance loan portfolio?
RBI-registered NBFC Auxilo Finserve is acquiring the loan portfolio.
3. When did FinZ Finance receive its NBFC licence?
FinZ Finance received its NBFC licence in September 2025 and started operations in February 2026.
4. What was PhysicsWallah’s revenue in Q1 FY27?
PhysicsWallah reported revenue from operations of Rs 1,054 crore in Q1 FY27, up 24.4% year-on-year.
5. How did PhysicsWallah’s stock react to the development?
PhysicsWallah’s share price rose more than 6% on Monday and was trading at Rs 128.1 as of 2:46 PM.
