New Delhi, Nov. 19 -- PhysicsWallah Ltd's stellar listing is likely to set the tone for the wider edtech sector over the next few quarters, bringing back funding to online learning startups starved of capital for two to three years, according to investors, founders and industry experts.

The Westbridge Capital-backed company, which raised Rs.3,100 crore in its initial public offering, listed at a 33% premium to its IPO price. Shares of the edtech firm closed at a valuation of Rs.44,000 crore (about $5 billion) on the first trading day. The stock opened at Rs.145 on the National Stock Exchange and Rs.143.90 on the BSE compared with the issue price of Rs.109 per share.

Siddharth Pai, founding partner at 3one4 Capital, sees PhysicsWallah's ...