Lightspeed Exits PhysicsWallah for ₹550 Cr, Securing 31% Gain

Venture capital firm Lightspeed Venture Partners has fully divested its 1.6% stake in edtech unicorn PhysicsWallah, executing a share sale valued at approximately Rs 550 crore.

This significant exit marks Lightspeed’s full divestment from the company, realizing a substantial gain less than two years after their initial investment.

The Deal in Numbers

• Lightspeed divested its entire 1.6% stake.
• The share sale generated approximately Rs 550 crore.
• Lightspeed achieved a gross gain of about Rs 130 crore.
• This represents a 31% return on their investment.
• The exit occurred in less than two years from initial investment.

The shares were acquired by a consortium of institutional investors, with ICICI Prudential Mutual Fund leading the purchases.

Key Purchasers

• ICICI Prudential Mutual Fund acquired 2.2 crore shares.
• This purchase represented 0.8% of PhysicsWallah.
• The fund invested Rs 258 crore in the transaction.
• Other buyers included Goldman Sachs and Tata AIA Life Insurance.
• Morgan Stanley Asia, Citigroup, Ghisallo, and Societe Generale also participated.

Following the significant share sale, PhysicsWallah’s shares experienced a positive market reaction on the National Stock Exchange.

• PhysicsWallah shares closed 3.9% higher on the NSE.

The edtech firm also recently disclosed its financial performance for the June quarter, indicating robust growth metrics.

• Consolidated total income increased by 29% to Rs 1,162.8 crore.
• The net loss for the quarter narrowed to Rs 88.3 crore.
• This represents an improvement from a Rs 127 crore loss in the previous year.

This strategic divestment by Lightspeed underscores the dynamic landscape of India’s edtech sector and the potential for substantial investor returns.