Edtech Klassroom’s Shares List At 7% Premium To Issue Price

Fusion Klassroom Edutech debuted on the BSE SME platform at ₹170, a 6.9% premium over its IPO issue price of ₹159.

The listing offers a fresh test of public market appetite for edtech companies, a sector that has seen limited IPO activity amid funding slowdowns and profitability concerns.

Fusion Klassroom's ₹39.04 Cr IPO, comprising a fresh issue and an OFS, was subscribed 1.46x, with the company planning to use the proceeds for technology upgrades, content development, offline expansion and debt repayment

Shares of Fusion Klassroom Edutech made their stock market debut on the BSE SME platform today, listing at a premium of 6.92% to the issue price of ₹159. The stock got listed at ₹170 and subsequently climbed to ₹178.50, up 12.26% from the issue price. 

The company’s market capitalisation stood at ₹164.9 Cr (about $17.3 Mn) at 10:25 IST.

Klassroom had set a price band of ₹151 to ₹159 for the issue, seeking a valuation of ₹148.1 Cr (about $15.3 Mn). At the upper end of the price band, Klassroom was looking to raise ₹39 Cr through the IPO.

The public issue comprised a fresh issue of up to 19.89 Lakh shares and an OFS of up to 4.66 Lakh shares. The IPO was subscribed 1.46X. 

Founded in 2016 by Alka Javeri and her sons Dhruv and Dhumil Javeri, the edtech company operates a hybrid learning platform spanning K-12 education, competitive examination preparation, professional upskilling, and AI/ML learning solutions. 

It operates an OTT platform for online learning, and runs over 30 partner centres in Mumbai for offline learning and skill development. It also partners with educational institutions and government bodies to deliver academic programmes, competitive examination preparation, new age skilling and employability-focused initiatives. It claims to have over 6 Lakh registered users and 2 Lakh paid subscribers.

The edtech company will deploy the net proceeds from the fresh issue towards technology upgrades, content development, marketing and brand building, and debt repayment.

Speaking to Inc42 ahead of the listing, Klassroom’s cofounders said the company is betting on the growing acceptance of hybrid learning in the post-pandemic era, arguing that students now prefer the flexibility of combining online and offline education rather than choosing one over the other. 

They said the company has deliberately built its business around this shift, with an education OTT platform complemented by offline learning centres and institutional partnerships, instead of operating as a pure-play online edtech platform.  

The company also plans to use a part of the IPO proceeds to strengthen its technology stack, with a focus on an in-house AI tutor designed to offer personalised doubt-solving and learning support. 

Alongside this, Klassroom is expanding its multilingual content strategy after piloting courses in five languages, with plans to eventually cover 13 Indian languages that it estimates will cater to nearly 95% of the country’s population. The cofounders said the initiative is aimed at improving access to quality education and AI-led upskilling in non-English-speaking markets, which they see as a significant growth opportunity.  

On the financial front, Klassroom posted an operating revenue of ₹23 Cr in FY26, up 128% from around ₹10 Cr in the year prior. Net profit jumped nearly 162% to ₹7.6 Cr from ₹2.9 Cr in FY25.

Source: Inc42 - Startups