Key Takeaways
- Klassroom IPO opens July 31, closes August 4, with shares priced at ₹151-159
- The edtech startup posted ₹23 Cr revenue in FY26, up 128% YoY, with ₹7.6 Cr net profit
- Proceeds will fund tech upgrades, content development, offline expansion, and debt repayment
Edtech startup Klassroom will open its SME IPO on July 31, seeking to raise ₹39 Cr at a valuation of ₹148.1 Cr (roughly $15.3 Mn). The price band is set at ₹151-159 per share, with anchor investor bidding scheduled for July 30. The issue closes August 4, and shares are expected to list on BSE SME on August 7.
Fusion Klassroom, the parent company, filed its draft red herring prospectus in February and received SEBI's in-principle approval in June. The IPO comprises a fresh issue of 19.89 lakh shares and an offer for sale of 4.66 lakh shares from existing shareholders.
How will Klassroom spend the IPO proceeds?
The company has earmarked the fresh issue proceeds across four areas. Technology and content get the lion's share, with ₹5.35 Cr allocated to video production, subtitle and audio review, and skill-based courses. Marketing and brand building will receive ₹5.21 Cr. The company plans to spend ₹1.95 Cr on desktops and laptops for new offline centers, while ₹2.35 Cr will go toward repaying outstanding borrowings.
| Use of Proceeds | Amount (₹ Cr) |
|---|---|
| Content development & video production | 5.35 |
| Marketing & brand building | 5.21 |
| Debt repayment | 2.35 |
| Hardware for offline centers | 1.95 |
What does Klassroom actually do?
Founded in 2016 by Alka Javeri and her sons Dhruv and Dhumil Javeri, Klassroom runs a hybrid learning platform that spans K-12 education, competitive exam prep, professional upskilling, and AI/ML training. The company operates both an OTT platform for online learning and over 30 partner centers in Mumbai for in-person classes.
Beyond individual subscriptions, Klassroom partners with enterprises, educational institutions, and government bodies. These partnerships cover OTT subscriptions, custom content development, offline training, and setting up AI/ML labs. The startup claims 6 lakh registered users and 2 lakh paid subscribers.
Financial performance: 128% revenue growth
Klassroom's financials are the real story here. The company posted operating revenue of ₹23 Cr in FY26, more than doubling from ₹10 Cr in FY25. Net profit jumped 162% to ₹7.6 Cr from ₹2.9 Cr. For an edtech startup heading to public markets, profitability is no small thing. Most edtech firms have struggled to turn a profit, making Klassroom's margins notable.
The startup has previously raised over $2 Mn from investors including Bollywood actor Suniel Shetty, LetsVenture, ah! Ventures, Growth Sense, and CPT Family Trust.
Context on current funding environment for tech IPOs
Where does this fit in India's edtech landscape?
Edtech funding in India remains subdued. The sector's high-profile blowups in 2023-2024 made investors cautious, and many startups pivoted to profitability over growth. But profitable, niche players are still finding paths to capital. PhysicsWallah went public last year with a ₹3,500 Cr IPO at a $3.5 Bn valuation. More recently, upskilling startup Emversity raised $30 Mn in a Series A led by Premji Invest, with Lightspeed and Z47 participating.
Klassroom's IPO signals that the public markets remain open to edtech firms that can demonstrate unit economics. The SME platform offers a lower-stakes entry point than a mainboard listing, with less stringent compliance requirements and smaller issue sizes. For a ₹148 Cr company, BSE SME is the right venue.
Another profitable Indian tech company's recent performance
Key IPO dates and timeline
Logicity's Take
Klassroom's hybrid model, combining an OTT platform with 30+ offline centers, differentiates it from pure-play online edtech. The B2G (business-to-government) partnerships add revenue diversification that pure B2C players lack. For finance teams evaluating edtech exposure, the key metrics are the 33% net profit margin and the 128% revenue growth. That said, at ₹148 Cr valuation on ₹23 Cr revenue, the price-to-sales ratio of 6.4x is reasonable for growth but not cheap. The SME listing also means lower liquidity than mainboard stocks. Compare this to PhysicsWallah's public market entry at a far higher multiple but with commensurately larger scale.
Frequently Asked Questions
When does the Klassroom IPO open and close?
The IPO opens on July 31, 2026 and closes on August 4, 2026. Anchor investor bidding takes place on July 30.
What is the Klassroom IPO price band?
The price band is set at ₹151 to ₹159 per share, valuing the company at ₹148.1 Cr at the upper end.
How much is Klassroom raising through the IPO?
At the upper price band, Klassroom is looking to raise ₹39 Cr through a combination of fresh issue and offer for sale.
Is Klassroom profitable?
Yes. The company reported ₹7.6 Cr net profit in FY26, up 162% from ₹2.9 Cr in the prior year.
Which exchange will Klassroom list on?
Klassroom shares are expected to list on the BSE SME platform on August 7, 2026.
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Source: Inc42 Media / Anjali Jain
Huma Shazia
Senior AI & Tech Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
