Mumbai, June 5 -- After scrapping its on- book lending strategy, Physics Wallah is now exploring ways to recover the Rs.120 crore invested in lending arm FinZ Finance, including a potential sale, loan book transfer and surrender of lending licences, two people familiar with the matter said. The decision comes only a week after the edtech company announced the infusion, signalling plans to expand its presence in education financing. On Thursday, however, the firm said it would abandon its on-book lending strategy and instead partner with regulated third-party non-banking financial companies (NBFCs) to offer student financing. "The long term partners of the firm suggested the company to not diversify into this (lending) segment as they are doing well as an education business," one of the people said. "The firm will now look at options to recoup the investments either through sale or letting go of the license and relying on capital reduction." The decision will follow a board review and regulatory approval, the person added. In an exchange filing, Physics Wallah said it would no longer pursue lending on its own books and would operate as a technology platform connecting students with a curated set of regulated lending partners. The revised strategy would materially reduce balance-sheet and credit-related risks, it said. "We received feedback from our partners that our core strength lies in building communities and our online business. Our lending business is best left to regulated third-party NBFCs who have created robust underwriting capabilities," Prateek Maheshwari, co-founder of Physics Wallah, said in the filing. The firm said its strategic direction for FinZ Finance will be decided in the near future subject to the Board and other regulatory approvals, without sharing further details. Physics Wallah did not reply to queries till press time At its FY26 earnings call last week, it said that it stop further capital allocation towards its K-12 schools expansion plans after investing around Rs.100 crore and signalled a stronger focus on profitability and disciplined capital deployment....