PhysicsWallah has exited the student lending business by selling its loan book worth ₹96 crore to Auxilo, a non-banking financial company focused on education loans, according to livemint.com. The transaction marks a strategic shift for the edtech company, which had ventured into student financing to support its user base.
The deal was finalized recently, with Auxilo acquiring the entire loan portfolio from PhysicsWallah. The move comes as PhysicsWallah decided to focus on its core education offerings rather than managing financial products. Auxilo, which specializes in education loans, will now manage the lending operations and collections for these borrowers, as reported by livemint.com.
This transaction highlights a growing trend among edtech companies in India to partner with or exit financial services to concentrate on their primary educational products. Auxilo's acquisition adds to its expanding portfolio in the education finance sector, which has seen increased demand as more students seek affordable credit options for higher education. The deal aligns with Auxilo’s strategy to deepen its presence in the student lending market.
Auxilo now manages a loan book of ₹96 crore acquired from PhysicsWallah, strengthening its position in the education finance sector, livemint.com reported. This deal follows Auxilo’s previous expansions and reflects the increasing importance of specialized lenders in supporting India’s growing student population.