Physicswallah Limited announced a significant revision in its lending strategy, moving away from direct student financing through its subsidiary FinZ Finance Private Limited. The company has partnered with multiple leading regulated third-party Non-Banking Financial Companies (NBFCs) to facilitate student lending needs. This strategic shift aims to substantially reduce the balance sheet and credit-related risks for Physicswallah. Under the new model, Physicswallah will operate as a technology platform, connecting its students with a curated list of regulated lending partners. This approach is intended to enhance affordability and accessibility for students while ensuring a more scalable and robust lending ecosystem. The company had previously announced an investment of approximately ₹120 crore in FinZ Finance. The future strategic direction for FinZ Finance will be determined in the near future, pending Board and regulatory approvals. Prateek Maheshwari, Co-founder of Physicswallah, stated that the company's core strengths lie in community building and its online business, while lending operations are best managed by regulated NBFCs with established underwriting capabilities. He emphasized that this decision aligns with the company's commitment to prudent capital allocation and shareholder value.
