MUMBAI, June 4 -- Physics Wallah is weighing options to recover the Rs.120 crore recently infused into its lending subsidiary FinZ Finance, including a potential sale, transfer of its loan book and surrender of lending-related licences, after deciding to scrap its on-book lending strategy, according to two people familiar with the matter.

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 company 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 ...