Mumbai, Oct. 5 -- The portfolio constitutes a substantial or major part of FinZ Finance's total loan book, and the transaction is expected to result in a partial or piecemeal closure of its direct lending operations.

The move signals a change in PhysicsWallah's approach to its business. In June 2026, the company said it would move away from lending through its own books and instead work with regulated third-party NBFCs to provide financing to students. The company had earlier planned to strengthen FinZ Finance through an investment of about Rs 120 crore, but subsequently decided to adopt a partner-led model.

Under the new arrangement, PhysicsWallah intends to facilitate lending through established and regulated NBFCs rather than carry t...