PhysicsWallah’s wholly owned lending subsidiary, FinZ Finance Private Limited, has agreed to sell a loan portfolio worth Rs 95.79 crore to Auxilo Finserve Private Limited, a non-banking financial company (NBFC) registered with the Reserve Bank of India that focuses on the education sector. Physicswallah Limited disclosed the transaction to the National Stock Exchange and BSE in a filing dated 4 October 2026. The deed of assignment was signed on 3 October.

The filing describes the portfolio as a substantial or major part of FinZ’s total loan book and says the sale amounts to a partial or piecemeal closure of the subsidiary’s lending operations. The transfer is expected to conclude within 60 days. The filing does not state the size of FinZ’s total loan book, whether a gain or loss will be booked on the sale, or whether Auxilo is a related party.

Why PhysicsWallah is pulling back

The company said the move was part of a broader strategic realignment to focus on its core business and improve capital allocation. Future lending will be facilitated through third-party NBFCs, which the company said would reduce balance sheet and credit risk. The filing refers back to an earlier intimation, dated 4 June 2026, about restructuring the lending strategy of its NBFC segment.

FinZ is a young business. According to the filing, it began operations in February 2026 and recorded no revenue from operations in the year to 31 March 2026. Its other income for that year was Rs 1.35 crore, equal to 0.54% of the group figure, and its net worth at 31 March 2026 was Rs 60.30 crore, or 1.18% of the group’s.

Business Standard reported that PhysicsWallah had planned in May 2026 to invest Rs 120 crore in FinZ through a rights issue, that FinZ received its lending licence in September 2025, and that management had said about 70% to 75% of its loans went to students already enrolled on the PhysicsWallah platform. Business Standard gave March 2026 as the start of operations; the company’s filing says February.

The buyer and what is not disclosed

Auxilo Finserve is described in the filing as an RBI-registered NBFC focused primarily on the education sector. The filing does not say how Auxilo is paying for the portfolio, how many borrowers are covered, what the average loan size is, or whether Auxilo will be one of the third-party lenders PhysicsWallah uses for future loans to its students.

PhysicsWallah’s shares trade on the NSE and BSE. TED does not reproduce share prices; the company’s full disclosure is in the NSE archive filing linked above.

What it means

TED analysis:

  • For investors: the sale is small against the group, with FinZ at 1.18% of consolidated net worth, but it largely unwinds a lending business that only began operating in February 2026. It shows the listed company choosing partner lending over holding student credit risk on its own balance sheet.
  • For education lenders: a specialist NBFC buying a book originated by a learning platform gets borrowers who are already enrolled on a course. Other edtech companies running in-house lending arms may face the same choice between keeping the loans and selling them to a specialist.
  • For edtech operators: offering finance at the point of enrolment remains part of PhysicsWallah’s model, but the loans will now sit with third parties. That makes the platform’s course sales more dependent on partner lenders’ credit policies and appetite.