Physics Wallah (NSE:PWL, BOM:544609) has revised its student lending strategy and partnered with multiple regulated non-banking financial companies to facilitate loans for students, according to a Thursday filing on Indian bourses.
The move reverses the company's earlier plan to expand lending through its wholly owned subsidiary FinZ Finance, in which it had recently announced an investment of about 1.20 billion rupees.
Physics Wallah said the new model is expected to reduce balance-sheet and credit risks. The company added that it will continue to operate as a technology platform connecting students with lending partners.
The future strategic direction of FinZ Finance will be decided later, subject to board and regulatory approvals, Physics Wallah said in the filing.
Shares of the company jumped nearly 15% in recent trade.