Fusion Klassroom Edutech, a Mumbai-based ed-tech and skill development company, is launching its maiden public issue on July 31, 2026, targeting to raise ₹39.04 crore at a valuation of ₹148.1 crore. According to reports from Moneycontrol, the company will issue 19.89 lakh fresh shares via IPO, while existing shareholders including promoters and investors will sell 4.65 lakh shares through an offer-for-sale. The price band has been fixed at ₹151-159 per share with a minimum bid lot of 1,600 equity shares and multiples of 800 thereafter. The anchor book will be launched on July 30, 2026, while the public subscription will close on August 4, 2026. IPO share allotment will be finalized by August 5, 2026, and participants can begin trading Klassroom shares on the BSE SME platform on August 7, 2026. Notably, Klassroom received in-principle approval from SEBI early last month after filing its DRHP in February this year.
Founded by Alka Nikhil Javeri and her two sons, Fusion Klassroom Edutech operates a hybrid learning ecosystem comprising 30 offline partner centres, an AI-powered Education OTT App featuring over 100 courses, and a nationwide footprint of over 6 lakh registered users. As reported by Moneycontrol, the company's business model combines traditional offline learning centers with digital education platforms, positioning it in the growing hybrid education market. The company's education app has already accumulated over six lakh users, demonstrating strong market traction for its digital learning solutions. The company provides training for CA, CS, CMA, and other commerce-related examinations using both classroom teaching and online platforms. The company's operational structure relies on a blended learning system that offers both online digital resources and offline learning facilities, with main solutions targeting K-12 education, competitive test preparation and skill enhancement programs. According to the latest DRHP, the company operates through a multi-channel model including B2C, B2B2C, B2B, and B2G segments, with 2,66,986 subscribers and 74,000 active users. The startup claims to have over 6 lakh registered users and 2 lakh paid subscribers.
The company demonstrated exceptional financial growth in the financial year ended March 2026, recording a profit of ₹7.6 crore, representing a 162 percent increase from ₹2.9 crore in the previous year. According to Moneycontrol, revenue soared 128.4 percent to ₹23.10 crore from ₹10.1 crore during the same period. As per the latest DRHP, revenue from operations surged from ₹4.58 crore in FY2024 to ₹23.04 crore in FY2026, representing a 403 percent growth over two years. Total revenue reached ₹23.10 crore in FY2026 compared to ₹10.11 crore in FY2025. The company's assets grew significantly from ₹4.48 crore in March 2024 to ₹25.46 crore in March 2026, while net worth increased from ₹3.92 crore to ₹18.41 crore over the same period. The company's reserves and surplus also expanded from ₹3.90 crore to ₹11.09 crore, indicating strong financial health and operational efficiency. Operating cash flow generation reached ₹1,071.40 lakhs in the recent fiscal year, with net operating cash flow turning positive.
The company plans to utilize proceeds from the fresh issue for debt repayment, technology and AI/ML model development, servers and cloud infrastructure, content development, and procurement of desktop and laptops for new offline centers. Additional funds will be allocated for marketing initiatives, loan repayment, inorganic growth through acquisitions, and general corporate purposes. The total identified use of proceeds amounts to ₹21.59 crore, with ₹2.36 crore allocated for prepayment/repayment of outstanding borrowings, ₹6.71 crore for technology and AI/ML model development, ₹5.35 crore for capital expenditure towards content development, ₹1.95 crore for procurement of desktops and laptops for new offline centers, and ₹5.22 crore for marketing initiatives. The merchant banker managing the IPO is Narnolia Financial Services Ltd, while Maashitla Securities Private Limited serves as the registrar.
The IPO launch comes at a time when the ed-tech sector is experiencing renewed investor interest, with Fusion Klassroom Edutech's strong financial performance and established market presence providing a solid foundation for public listing. The company's hybrid learning model, combining traditional offline centers with digital platforms, positions it well in the evolving education technology landscape. According to recent reports, the IPO shows that profitable, niche edtech startups continue to tap the public markets despite a prolonged funding slowdown in the sector. The company's ₹39 crore IPO demonstrates that funding activity in India's edtech sector remains subdued, even as a handful of profitable startups continue to attract investor interest. The startup has raised more than $2 million from investors including Bollywood actor Suniel Shetty, LetsVenture, ah! Ventures, Growth Sense, and CPT Family Trust to date. Notably, last year, PhysicsWallah debuted on the public markets with a ₹3,500 crore IPO at a valuation of about $3.5 billion, while more recently, upskilling startup Emversity raised $30 million in a Series A funding round led by Premji Invest with participation from Lightspeed and Z47.
