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Edtech startup Klassroom’s SME IPO will open on July 31 (Friday). The public issue comprises a fresh issue of up to 19.89 Lakh shares and an offer for sale of up to 4.66 Lakh shares.

Fusion Klassroom, the parent of the edtech startup, has 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 is looking to raise ₹39 Cr through the IPO.

While anchor investor bidding will take place on July 30, the IPO will close on August 4. The company’s shares are expected to list on the BSE SME platform on August 7.

Notably, Klassroom received in-principle approval from SEBI early last month after filing its DRHP in February this year.

According to the RHP, Klassroom plans to deploy the proceeds from the fresh issue towards technology upgrades, content development, marketing and brand building, and debt repayment. 

• It plans to use ₹2.35 Cr toward prepayment or repayment of all or a portion of certain outstanding borrowings
• Around ₹5.35 Cr will be utilised towards capital expenditure for content development, specifically sharpening its educational video production, subtitles/ audio review, and skill-based courses 
• It will utilise ₹1.95 Cr to fund the procurement of desktop and laptops for its new offline centres 
• Lastly, ₹5.21 Cr has been earmarked for marketing initiatives by the company 

Founded in 2016 by Alka Javeri and her sons Dhruv and Dhumil Javeri, the edtech startup 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.

Apart from individual subscriptions, Klassroom offers partnership with enterprises, institutions and government bodies spanning OTT subscriptions, content development, offline training, and the establishment of AI & ML labs for academic and skill development.

The startup claims to have over 6 Lakh registered users and 2 Lakh paid subscribers. 

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. 

The startup has raised more than $2 Mn from investors including bollywood actor Suniel Shetty, LetsVenture, ah! Ventures, Growth Sense, CPT Family Trust, among others, to date. 

The IPO comes at a time when funding activity in India’s edtech sector remains subdued, even as a handful of profitable startups continue to attract investor interest. Last year, PhysicsWallah debuted on the public markets with a ₹3,500 Cr IPO at a valuation of about $3.5 Bn. 

More recently, upskilling startup Emversity raised $30 Mn in a Series A funding round led by Premji Invest with participation from Lightspeed and Z47.  

The post Edtech Startup Klassroom’s IPO To Open On July 31, Price Band Set At ₹151-159 appeared first on Inc42 Media.