PhysicsWallah on Thursday said it will decide the future strategic direction of its wholly owned lending subsidiary FinZ Finance Private Limited in the near future, subject to board and regulatory approvals, after reversing its earlier plan to expand direct student lending operations.
“This decision reverses the Company’s earlier approach and is intended to materially reduce balance sheet and credit-related risks for the Company,” PhysicsWallah said in its exchange filing.
The announcement comes days after PhysicsWallah disclosed an equity infusion of about Rs 120 crore into FinZ Finance. The company has now restructured its lending strategy and partnered with multiple regulated non-banking financial companies (NBFCs) to cater to student financing needs, a move it said would materially reduce balance sheet and credit risks.
Under the revised model, PhysicsWallah will function as a technology platform connecting students with a curated network of regulated lending partners based on their learning journey and academic outcomes, rather than undertaking lending activities directly.
“Going forward, our strategic direction for FinZ Finance will be decided in the near future, subject to the Board and other regulatory approvals,” the company said in a press release.
