PhysicsWallah offloads ₹96 Cr loan book to Auxilo in lending pullback
PhysicsWallah has sold ₹95.79 crore of its student loan portfolio to Auxilo Finserve, exiting the lending business it launched through its subsidiary FinZ Finance. The deal, first reported by Inc42, marks a reversal for the edtech company, which had previously scaled its loan product before deciding to wind it down.
The transaction follows a pattern of fintech lenders re-evaluating their portfolios amid shifting market conditions. When we covered PhysicsWallah’s loan book sale earlier this month, the move appeared to reflect a broader recalibration in edtech’s approach to financial services. The sector had seen a surge in lending experiments, but many have since narrowed their focus or exited entirely.
Auxilo, a non-bank financial company, specializes in education financing and may see value in the portfolio’s existing borrower base. For PhysicsWallah, the sale removes a capital-intensive vertical while allowing it to redirect resources toward its core education offerings. The decision aligns with a broader trend of fintech lenders prioritizing profitability over growth, particularly in segments like student loans where repayment risks are high.
What remains unclear is whether PhysicsWallah will explore partnerships with external lenders in the future or abandon financial services altogether. The company’s next moves could offer a template for other edtech players grappling with similar decisions.
Sources: inc42.com
“The sale signals edtech’s retreat from in-house lending after a brief push into financial services.”
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