Archive · 6 Oct 2026
PhysicsWallah Transfers ₹95.79 Crore Loan Book to Auxilo
PhysicsWallah had started a company called FinZ Finance to lend money to students.
FinZ has agreed to transfer loans worth ₹95.79 crore to Auxilo Finserve, a company that focuses on education finance.
The loans make up a substantial part of FinZ’s total loans.
The deal was signed on 3 October, and the transfer is expected within 60 days.
PhysicsWallah had planned for FinZ to lend directly, but later decided to work with other regulated finance companies.
That means those companies, rather than FinZ, will carry more of the lending exposure.
PhysicsWallah says this change will help it focus on its main business and reduce financial risks.
FinZ received its lending licence in September 2025 and began operating in February 2026.
FinZ Finance agreed to transfer a ₹95.79 crore loan portfolio to Auxilo Finserve.
The portfolio is a substantial or major part of FinZ Finance’s total loans, and the transfer is expected within 60 days.
PhysicsWallah signed the deed of assignment on 3 October 2026, with the consideration also set at ₹95.79 crore.
PhysicsWallah is shifting from direct lending through FinZ toward facilitating student loans through regulated third-party NBFCs.
FinZ received its NBFC licence in September 2025 and began operations in February 2026; PhysicsWallah had approved a proposed ₹120 crore equity infusion in May before reversing course.
- Who
- FinZ Finance, a wholly owned PhysicsWallah subsidiary, agreed to transfer the loan portfolio to Auxilo Finserve.
- What
- A ₹95.79 crore loan portfolio, described as a substantial or major part of FinZ Finance’s total loans, is being sold and assigned.
- When
- The deed of assignment was signed on 3 October 2026; the transfer is expected to be completed within 60 days.
- Where
- The transaction was disclosed in a PhysicsWallah stock exchange filing; no specific location is stated.
- Why
- PhysicsWallah is shifting student financing toward third-party NBFCs as part of a strategy to focus on its core business, optimise capital allocation and reduce balance-sheet and credit risks.
Direct lending
Third-party lending
Who carries student-loan exposure
Direct lending
PhysicsWallah initially planned for its subsidiary FinZ Finance to lend directly to students from its own books.
Third-party lending
PhysicsWallah later chose to work with regulated third-party NBFCs, shifting lending exposure away from FinZ Finance’s balance sheet.
Capital and business risks
Direct lending
The in-house model would allow PhysicsWallah to provide student financing through its own lending arm.
Third-party lending
Investors raised questions about the capital needs and risks of building a lending business outside PhysicsWallah’s core operations; the company cited capital allocation, efficiency and risk reduction in explaining its revised approach.
- Loan portfolio and consideration
- ₹95.79 crore
- Seller
- FinZ Finance, a wholly owned subsidiary of PhysicsWallah
- Buyer
- Auxilo Finserve, an RBI-registered NBFC focused primarily on education finance
- Assignment deed
- Signed on 3 October 2026
- Expected transfer completion
- Within 60 days
- FinZ Finance licence and operations
- Received its NBFC licence in September 2025 and began operations in February 2026
- FinZ Finance FY26 figures
- No revenue from operations; other income of ₹1.35 crore
- Proposed equity infusion
- PhysicsWallah’s audit committee approved an infusion of about ₹120 crore on 27 May; the company reversed course about a week later
