The subsidiary of PhysicsWallah, FinZ Finance, has entered into an agreement with the non-banking financial company (NBFC) Auxilo Finserve to sell and transfer a loan portfolio. According to the stock exchange report, the value of this portfolio is 95.79 crore rupees.
The assignment deed was signed on October 3, 2026, and the transfer of loans and borrowers is expected to be completed within the next 60 days. This deal will lead to the partial or phased closure of FinZ Finance's lending operations.
Auxilo is an NBFC registered with the Reserve Bank of India and specializes primarily in the education sector. This transaction is part of PhysicsWallah's strategic restructuring, which aims to focus on the company's core business and optimize capital allocation.
An official statement indicated that closing a significant portion of FinZ Finance's total loan portfolio is part of a broader strategic restructuring aimed at concentrating on the company's core operations and optimizing capital utilization. It is further planned that lending activities will be conducted through established and regulated third-party NBFCs.
PhysicsWallah stated that this step will help increase operational efficiency while reducing balance sheet risks and credit risks associated with issuing loans. Earlier this year in May, PhysicsWallah announced plans to invest 120 crore rupees in FinZ Finance through rights issuance.
The subsidiary received its license in September 2025 and began operations in March 2026. PhysicsWallah management had previously reported that FinZ Finance primarily served its students, with about 70-75 percent of loans provided to students already registered on the platform.