1 hr ago
PhysicsWallah Sells ₹95.79 Crore Loan Portfolio to Auxilo
PhysicsWallah had set up FinZ Finance to lend money to students.
It has now agreed to sell a ₹95.79 crore group of loans from FinZ to Auxilo Finserve, a finance company.
The loans make up a substantial part of FinZ’s loan book.
PhysicsWallah had earlier said it would lend from its own books.
Later, it said it would work with other finance companies instead of carrying all the lending risk itself.
Some investors had questioned the capital needs and risks of running a lending business.
FinZ received its licence in September 2025 and began operating in February 2026.
PhysicsWallah also reported higher revenue and a smaller net loss in Q1 FY27.
PhysicsWallah subsidiary FinZ Finance agreed to transfer a ₹95.79 crore loan portfolio to Auxilo Finserve.
The portfolio makes up a substantial part of FinZ Finance’s total loan book.
PhysicsWallah had first planned for FinZ to lend directly, but later said it would use third-party NBFCs.
FinZ Finance received an NBFC licence in September 2025 and began operations in February 2026.
In Q1 FY27, PhysicsWallah reported revenue of ₹1,054 crore and a net loss of ₹88 crore.
- Who
- FinZ Finance, PhysicsWallah’s wholly owned subsidiary, and Auxilo Finserve.
- What
- FinZ Finance agreed to sell, transfer and assign a loan portfolio worth ₹95.79 crore to Auxilo Finserve.
- Where
- The stock exchange disclosure reported the transaction; no specific location is stated.
- When
- The transaction was disclosed in an article published October 5, 2026; the disclosure date is not specified.
- Why
- The sale aligns with PhysicsWallah’s shift toward working with third-party NBFCs rather than taking the full lending exposure on its own balance sheet.
In-house lending
Third-party lending
How student loans should be provided
In-house lending
PhysicsWallah initially positioned FinZ Finance as an in-house lending arm that could provide student loans from its own books.
Third-party lending
PhysicsWallah later said it would work with third-party NBFCs, reducing the lending exposure carried on its own balance sheet.
Risks and capital requirements
In-house lending
The articles report that the in-house approach was intended to let FinZ lend directly to students.
Third-party lending
Investors raised questions about the capital needs and risks of building a lending business outside PhysicsWallah’s core operations.
Key facts
- Loan portfolio value
- ₹95.79 crore
- Seller
- FinZ Finance, a wholly owned PhysicsWallah subsidiary
- Buyer
- Auxilo Finserve, an RBI-registered NBFC
- FinZ NBFC licence
- September 2025
- FinZ operations began
- February 2026
- Q1 FY27 revenue from operations
- ₹1,054 crore, up 24.4% year on year
- Q1 FY27 net loss
- ₹88 crore, down 30.7%
Sources
Related news
Three NBFCs Position for India’s Next Unsecured Credit Cycle
Motilal Oswal Initiates Coverage on 10 Stocks Across Sectors
UBS backs four NBFCs as personal-loan cycle strengthens
Bajaj Finance Approves ₹17,500 Crore Raise as Jefferies Sees Upside
Gold-loan NBFCs face tougher competition as banks expand offerings
Jio Credit to Redraw Strategy After Bank of America Infusion
PW Shiksha Mahotsav Offers Deep Discounts on Competitive Exam Books
Mohan Babu University, PhysicsWallah Partner on Industry-Ready Skills
History Favors October Stock Market Comeback; Stocks to Watch
