New Delhi, Oct. 6 -- PhysicsWallah is stepping back from direct student lending less than a year after its financing arm received a banking regulator's licence. The edtech company said its wholly owned subsidiary FinZ Finance has agreed to transfer a loan portfolio worth Rs.95.79 crore to education-focused NBFC Auxilo Finserve, effectively bringing its short-lived direct lending strategy to an end.

FinZ Finance signed a deed of assignment with Auxilo on 3 October for the sale and transfer of the portfolio, according to a regulatory filing by PhysicsWallah. The consideration for the transaction is also Rs.95.79 crore.

The company said the portfolio represents the "substantial/major part" of FinZ Finance's total loans. The transfer of the...