PhysicsWallah’s wholly owned subsidiary, FinZ Finance, has agreed to sell and transfer a loan portfolio worth ₹95.79 crore to Auxilo Finserve, an RBI-registered NBFC focused on education finance. The deed of assignment was executed on October 3, 2026, with the transfer of loans and borrowers expected to be completed within 60 days.
The portfolio represents a substantial or major portion of FinZ Finance’s total loan book. Since lending is the subsidiary’s principal business, the transaction is expected to result in a partial or piecemeal closure of its lending operations.
The move is part of a broader strategic realignment by PhysicsWallah to focus on its core education business and optimise capital allocation. The company said it plans to facilitate student lending through established and regulated third-party NBFCs instead of directly carrying loans on its balance sheet.
PhysicsWallah said the shift could improve operational efficiency while reducing the balance-sheet exposure and credit risks associated with direct lending. Students will continue to have access to financing through lending partners, with PhysicsWallah functioning more as a technology and distribution platform.
The decision marks a significant change from the company’s earlier plans. In May 2026, PhysicsWallah had approved an investment of around ₹120 crore in FinZ Finance to expand its student-lending operations. Just days later, in June, the company announced a shift towards partnerships with third-party NBFCs.
FinZ Finance received its NBFC licence in September 2025 and began operations in early 2026. As of March 31, 2026, the subsidiary had a net worth of ₹60.30 crore and reported total income of ₹1.35 crore.
The portfolio transfer to Auxilo marks PhysicsWallah’s move away from an in-house lending model towards a partner-led approach, allowing the edtech company to concentrate capital and management resources on its core education operations.
