The IPO will help the edtech company raise funds to expand its operations and strengthen its market presence.
Edtech company Fusion Klassroom Edutech, which operates the Klassroom learning platform, has fixed the price band for its initial public offering (IPO) at Rs 151 to Rs 159 per share.
The SME IPO will open for subscription on 31 July and close on 4 August, while the anchor investor portion will open on 30 July. At the upper end of the price band, the company is expected to raise about Rs 39.04 crore.
IPO Structure
The public issue comprises a fresh issue of up to 19.89 lakh equity shares and an offer for sale (OFS) of up to 4.66 lakh shares, taking the total issue size to 24.55 lakh shares.
Of the total issue proceeds, the fresh issue is expected to raise around Rs 31.63 crore, while the OFS is valued at about Rs 7.41 crore. The proceeds from the OFS will go to the selling shareholders, and Fusion Klassroom will not receive any funds from this portion.
At the upper price band of Rs 159, the company is expected to have a post-issue market capitalisation of approximately Rs 148.14 crore.
The minimum application size is 1,600 shares, with bids accepted in multiples of 800 shares thereafter.
The company’s shares are proposed to be listed on the BSE SME platform, with a tentative listing date of 7 August.
How the Company Plans to Use the Funds
Fusion Klassroom intends to use the net proceeds from the fresh issue to strengthen its technology platform and expand its operations.
The company plans to invest Rs 6.71 crore in technology development, including AI and machine learning models, servers, and cloud infrastructure.
Another Rs 5.35 crore has been earmarked for content creation, covering educational videos, editing, subtitles, audio review, and new skills-based courses.
It also plans to allocate Rs 5.22 crore towards marketing and brand building, Rs 2.36 crore for repayment or prepayment of certain borrowings, and Rs 1.95 crore to purchase desktops and laptops for AI and machine learning laboratories at new offline centres.
The remaining proceeds will support future acquisitions and general corporate purposes.
What Klassroom Does
Founded in 2016 by Alka Javeri, Dhruv Javeri, and Dhumil Javeri, Fusion Klassroom operates a hybrid education model that combines digital learning with physical teaching centres.
The company offers courses across K-12 education, competitive and professional exam preparation, vocational training, professional upskilling, and AI and machine learning programmes.
It also partners with educational institutions, businesses, government agencies, and skill-development organisations to provide digital content, classroom training, and AI laboratories.
As of 31 March 2026, Klassroom reported:
- 659,048 registered users
- 266,986 subscribers
- 74,000 active users
- 30 offline learning centres
The company noted that its registered user count includes free users, demonstration accounts, testing registrations, and participants acquired through workshops and outreach programmes. As a result, the figure should not be interpreted as the number of paying customers.
Revenue and Profit Grow Strongly
Fusion Klassroom reported strong financial growth during the financial year ended 31 March 2026.
Revenue from operations increased 128.42% to Rs 23.04 crore, compared with Rs 10.09 crore in the previous year.
Profit after tax (PAT) rose 161.73% to Rs 7.60 crore, up from Rs 2.90 crore a year earlier.
The prospectus, however, highlights customer concentration as a potential business risk. Its largest customer contributed 40.11% of operating revenue during FY26, while its top five customers accounted for 75.65% of total revenue.
A significant portion of the company’s business also comes from enterprise subscriptions, distributors, channel partners, and government-related projects, alongside direct sales to individual learners.
Suniel Shetty Clarification
The company also addressed reports linking actor Suniel Shetty to its shareholding.
According to the prospectus, Shetty has supported some of the company’s educational and social initiatives as a mentor but is not an investor in Fusion Klassroom Edutech.
Narnolia Financial Services is acting as the sole book-running lead manager for the IPO, while Maashitla Securities has been appointed as the registrar.
