Fusion Klassroom Edutech Limited IPO Overview
Founded in 2016, Fusion Klassroom Edutech Limited is one of India’s fast-growing hybrid edtech platforms offering K-12 education, competitive examination preparation, professional upskilling, and AI/ML learning solutions. The company provides online education through its Klassroom Education OTT platform and offline learning and skilling programmes through its 30+ partner centres in Mumbai. It also works closely with educational institutions, universities, and government bodies to deliver academic programmes, competitive examination preparation, new-age skilling, and employability-focused initiatives.
To date, the company has recorded over 4 lakh cumulative learner registrations, more than 1 lakh paid subscribers, and maintains a library of over 100 courses and more than 3,300 hours of proprietary digital content.
The company is now launching its SME IPO on the BSE SME platform. The IPO is a 100% book-built offer of 24.55 lakh equity shares worth up to ₹39.04 crore, comprising a fresh issue of ₹30 crore and an Offer for Sale (OFS) of ₹7 crore, with a face value of ₹10 per share. The price band is set between ₹151 to ₹159 per share and the lot size for an application is 800 shares. The IPO opens on 31 July 2026 and closes on 4 August 2026, with listing expected on 7 August 2026 on the BSE SME platform.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – SME |
| Listing Exchange | BSE SME |
| Anchor Investor Date | 30 July 2026 |
| IPO Open Date | 31 July 2026 |
| IPO Close Date | 4 August 2026 |
| Allotment Date | 5 August 2026 (Expected) |
| Refund Initiation | 6 August 2026 |
| Credit to Demat | 6 August 2026 |
| Listing Date | 7 August 2026 (Tentative) |
| Price Band | ₹151 – ₹159 per share |
| Face Value | ₹10 per share |
| Lot Size | 800 shares |
| Minimum Investment (Retail) | ₹2,54,400 (2 lots = 1,600 shares) |
| Issue Size | ₹39.04 crore |
| Fresh Issue | 19,89,400 shares (₹30 crore approx.) |
| Offer For Sale (OFS) | 4,65,800 shares (₹7 crore approx.) |
| Post-Issue Market Cap | ~₹148.14 crore |
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | ~50% |
| Non-Institutional Investors (NII/HNI) | ~15% |
| Retail Individual Investors (RII) | ~35% |
| Market Maker | Reserved Portion |
OFS / Selling Shareholders
The promoter group of Fusion Klassroom Edutech consists of Mrs. Alka Nikhil Javeri, Mr. Dhruv Nikhil Javeri, and Mr. Dhumil Nikhil Javeri. Before the IPO, the promoters held a 54.73% stake and the promoter group held a 0.34% stake. After the IPO, the offering includes an offer for sale of 4.65 lakh equity shares by existing shareholders, diluting promoter holding.
Promoter holding is expected to decline from 55.07% before the IPO to 39.53% after the issue — a sharp reduction that deserves attention, as promoter ownership will fall below 40%, although the promoters will continue to remain the largest shareholder group.
Objects of the Issue (Fund Utilization)
The net proceeds from the fresh issue will be utilized for the following purposes: prepayment or repayment of all or a portion of certain outstanding borrowings; expenditure towards Technology & AI/ML Model Development, Servers and Cloud Infrastructure; funding capital expenditure towards Content Development; funding capital expenditure towards the procurement of desktops and laptops for new Offline Centres’ AI/ML labs; expenditure towards marketing initiatives; and funding inorganic growth through unidentified acquisitions and general corporate purposes.
- Repayment / prepayment of existing borrowings
- Technology & AI/ML model development
- Servers and cloud infrastructure
- Content development
- Procurement of desktops & laptops for new offline centres’ AI/ML labs
- Marketing initiatives
- Inorganic growth through potential acquisitions
- General corporate purposes
Lead Managers & Registrar
- Book Running Lead Manager: Narnolia Financial Services Ltd.
- Registrar to the Issue: Maashitla Securities Pvt. Ltd.
Promoters & Management
- Promoter: Mrs. Alka Nikhil Javeri
- Promoter: Mr. Dhruv Nikhil Javeri
- Promoter: Mr. Dhumil Nikhil Javeri
The company’s diversified business model combines subscription-based digital offerings with institutional partnerships, serving individual learners through its digital platform while partnering with educational institutions, universities, enterprises, and government bodies for enterprise OTT subscriptions, content development, offline training, and the establishment of AI & ML labs for academic and skill development.
Company Details
Incorporated in 2016, the company delivers academic education, competitive examination preparation, skill development, and employability-oriented training through its proprietary AI-powered Education OTT platform, offline partner centres, and institutional and government collaborations. The company’s offerings span school education, test preparation, professional and vocational courses, and emerging technology programmes including Artificial Intelligence and Machine Learning.
Sectors / Segments Served:
- K-12 School Education
- CA, CS, CMA & Commerce Exam Preparation
- Competitive Examination Coaching
- Professional & Vocational Upskilling
- AI & ML Learning Solutions
- Government & Institutional Training
Key Products & Platforms:
- Klassroom Education OTT Platform (AI-powered)
- Offline Learning Centres (30+ partner centres in Mumbai)
- AI/ML Labs for Academic Institutions
- Enterprise OTT Subscriptions for Universities & Corporates
Key Capabilities:
- High-margin, asset-light digital core with strong operating leverage; diversified and resilient revenue architecture; scaled, proven, and monetizable education platform with national reach; and deep government, institutional, and regulatory execution capability.
- 100+ courses and 3,300+ hours of proprietary digital content
Geographic Presence:
- Revenues from Uttar Pradesh constituted 42.60%, Rajasthan 24.00%, Maharashtra 26.76%, and Haryana 5.64% of total revenue from operations in FY26 — showing steady geographic diversification beyond its original Maharashtra base.
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
| FY25 | ₹10.09 | ₹2.90 |
| FY26 | ₹23.04 | ₹7.60 |
Key Financial Metrics
- Revenue for FY26 climbed to ₹23 crore, up from ₹10.1 crore in FY25, reflecting a year-on-year growth of over 128%. Net profit for FY26 stood at ₹7.6 crore, a significant increase from ₹2.9 crore in FY25.
- FY26 PAT margin: 32.99% | EBITDA margin: 56.38% | ROE: 53.45% | Debt-to-Equity ratio: 0.19
- Net operating cash flow turned positive at ₹10.71 crore in FY26.
- Post-issue P/E: ~19.5x (based on FY26 PAT)
- Post-issue market capitalization: ~₹148.14 crore
Company Strengths
- Exceptionally strong revenue growth of over 128% YoY in FY26 — one of the fastest-growing SME edtech companies in India.
- Unusually high margins for the education sector — EBITDA margin of 56.38% and PAT margin of 32.99% in FY26 — reflect the asset-light, digital-first business model.
- Diversified revenue model — combines B2C digital subscriptions, B2B institutional partnerships, government tie-ups, and offline centre revenues
- Proprietary content library with long economic life and AI SaaS optionality — 100+ courses and 3,300+ hours of content built over 9+ years.
- Growing institutional presence — partnerships with universities, enterprises, and government bodies provide stable non-retail revenue streams
- Expanding into high-demand AI/ML education segment, positioning the company well for future growth
Key Risks & Challenges
- Intense competition in the edtech space — sustainability of unusually high margins after higher marketing expenditure, technology investment, and expansion of offline centres is a key concern for investors.
- Sharp promoter dilution — promoter holding falling from 55.07% to 39.53% post-IPO deserves careful attention from long-term investors.
- The company does not own any of the properties from which it operates — inability to renew leases or renewal on unfavourable terms could disrupt operations and increase costs.
- Geographic concentration risk — majority of revenues still come from Uttar Pradesh, Rajasthan, and Maharashtra; limited national penetration so far
- Execution risk — maintaining high growth rates in the education sector can be challenging due to shifting student preferences and intense competition from both large established players and regional coaching centres.
- Planned acquisitions are for unidentified targets — deployment of IPO funds towards unknown acquisitions adds uncertainty to capital allocation
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
