Mumbai-based edtech startup Fusion Klassroom Edutech Limited (Klassroom) officially filed its Draft Red Herring Prospectus (DRHP) with SEBI to launch an Initial Public Offering (IPO) on the BSE SME platform.
This move is significant as Klassroom is among the few profitable edtech firms to tap the public markets, bucking the trend of a generally struggling sector.
IPO Details & Issue Structure
The IPO is a Book Building Issue aimed at raising capital for technology and expansion.
- Total Issue Size: Up to 24.55 lakh equity shares.
- Fresh Issue: 19.89 lakh shares (intended to bring new capital into the company).
- Offer for Sale (OFS): 4.66 lakh shares (being sold by existing promoters and early investors).
- Face Value: ₹10 per share.
- Listing: Proposed on the BSE SME platform.
Financial Performance (A Rare Profitable Edtech)
Klassroom has demonstrated exponential growth over the last two fiscal years, which has been a primary driver for its IPO timing.
| Metric | FY24 (Actual) | FY25 (Actual) | H1 FY26 (Sept 2025) |
| Operating Revenue | ₹4.62 Crore | ₹10.11 Crore | ₹12.37 Crore |
| Net Profit (PAT) | ₹34.4 Lakh | ₹2.90 Crore | ₹3.96 Crore |
| YoY Revenue Growth | — | ~120% | Trending Higher |
Use of Proceeds
The startup plans to deploy the fresh capital (estimated around ₹21.59 crore) into several strategic areas:
- Technology & AI (₹6.71 Cr): Development of proprietary AI/ML models, servers, and cloud infrastructure.
- Content Development (₹5.35 Cr): Creating new educational materials for its “Education OTT” platform.
- Marketing (₹5.22 Cr): Brand building and user acquisition initiatives.
- Debt Repayment (₹2.36 Cr): Pre-payment or repayment of outstanding borrowings.
- Hardware (₹1.95 Cr): Procurement of desktops and laptops for new offline center AI/ML labs.
Background: The “Education OTT” Model
Founded in 2016 by Alka, Dhruv, and Dhumil Javeri, Klassroom operates a unique hybrid model that combines:
- Digital: An AI-powered “Education OTT” app serving over 500,000 students.
- Physical: A network of 30 partner centers in Mumbai and a franchise-led presence in 600+ cities.
- Target Audience: Students from Classes 8 to 12, and aspirants for JEE, NEET, CA, and CS exams.
- Celebrity Backing: Bollywood actor and entrepreneur Suniel Shetty joined as a strategic investor in 2023 and remains a key supporter of the brand.
“The filing marks a formal transition for the company as it readies for public-market scrutiny, moving away from the ‘growth-at-any-cost’ venture capital model toward sustainable, public-led growth.” — Klassroom Spokesperson.
