Edtech company PhysicsWallah’s subsidiary FinZ Finance has agreed to sell a ₹95.79 crore loan portfolio to Auxilo Finserve, marking a significant step in its retreat from direct student lending. The deed of assignment was signed on October 3, with the loan transition expected to complete within 60 days, according to an exchange filing by PhysicsWallah.
The sale represents a substantial portion of FinZ Finance’s loan book and is part of a strategic realignment to optimise capital allocation and focus on PhysicsWallah’s core business. The company plans to facilitate lending through established, regulated third-party non-banking financial companies (NBFCs) like Auxilo to reduce balance sheet exposure and credit risks. Auxilo Finserve, founded in 2017 and based in Mumbai, is an RBI-registered NBFC specialising in education loans and financing for students and education sector stakeholders.
PhysicsWallah’s decision to unwind its direct lending push follows a reversal announced in June, shortly after approving a ₹120 crore capital infusion into FinZ Finance in May. The move aligns with broader trends in the education financing sector, where companies are increasingly partnering with specialised NBFCs to manage credit risk and capital efficiency. Auxilo’s acquisition of this portfolio underscores its growing role in the student loan market.
The transaction is expected to conclude within 60 days from the signing date, October 3, as stated in the company’s exchange filing. This sale marks a partial or piecemeal closure of FinZ Finance’s lending operations, signalling a shift in PhysicsWallah’s financial strategy.