PhysicsWallah Steps Back From Direct Lending With ₹95.79 Cr Sale
PhysicsWallah is transferring a major portion of the loan portfolio held by its wholly owned subsidiary, FinZ Finance, to education-focused lender Auxilo Finserve for ₹95.79 crore, as the edtech company scales back direct student lending.
FinZ Finance executed a deed of assignment with Auxilo on October 3. The transfer of the covered loans and associated borrowers is expected to be completed within 60 days.
The transaction puts into action the strategic shift PhysicsWallah announced in June. Instead of directly lending to students and carrying the associated credit risk on its books, the company plans to facilitate financing through established, regulated third-party NBFCs while keeping its focus on the core education business.
Since lending is FinZ Finance's principal business, PhysicsWallah said the transaction will result in a substantial reduction in its lending operations and is expected to lead to a partial or piecemeal closure of those operations.
However, the disclosure does...
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