Fusion Klassroom Edutech coming with IPO to raise Rs 39 crore

Fusion Klassroom Edutech 

• Fusion Klassroom Edutech is coming out with an initial public offering (IPO) of 24,55,200 shares in a price band of Rs 151-159 per equity share.
• The issue will open on July 31, 2026 and will close on August 04, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 15.10 times of its face value on the lower side and 15.90 times on the higher side.
• Book running lead manager to the issue is Narnolia Financial Services.
• Compliance officer for the issue is Jinal Karen Vora.

Profile of the company

Fusion Klassroom Edutech is an education technology company operating a scalable, AI-enabled hybrid learning ecosystem in India. Incorporated in 2016, it 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. Its offerings span school education, test preparation, professional and vocational courses, and emerging technology programs, including Artificial Intelligence and Machine Learning. To date, it has recorded over 6 lakhs cumulative learner registrations, more than 2 lakhs subscribers, and is supported by a library of over 100 courses and more than 3,300 hours of proprietary digital content. 

The company has received multiple national recognitions and awards for its contributions to education and skilling and is backed by marquee investors, reflecting strong market validation and institutional confidence in its platform and execution capabilities. The company operates through a diversified, multi-channel business model encompassing B2C, B2B, B2B2C, and B2G segments, generating revenues from digital subscriptions, offline centre fees, institutional licensing, AI-driven content deployment, government project execution, and channel-partner distribution. 

It has established long-term relationships with central and state government bodies, universities, skill councils, and private institutions across multiple states, enabling large-scale academic and AI-led skilling deployments. Its asset-light hybrid model, proprietary technology platform, and AI-enabled content and delivery capabilities provide operating leverage, scalability, and resilience, positioning the company as a trusted education technology partner aligned with India’s education, skilling, and workforce development priorities.

Proceed is being used for:

• Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company 
• Expenditure towards Technology & AI\ML Model Development, Servers and Cloud Infrastructure 
• Funding the capital expenditure towards Content Development 
• Funding the capital expenditure towards procurement of Desktop and Laptops for the new Offline Centers’ AI/ML labs 
• Expenditure towards Marketing initiatives 
• Funding inorganic growth through unidentified acquisitions and general corporate purposes (Collectively, referred to herein as the Objects)

Industry overview

India's formal education system, long dominated by offline schools and colleges, underwent a profound digital transformation across its value chain - from admissions to assessments - propelled by Educational Technology (EdTech). This shift accelerated dramatically during the COVID-19 pandemic, with the sector experiencing phenomenal growth; the market expanded from $2.763 billion in 2020 to a projected $10.269 billion by 2025. Post-pandemic, EdTech faces the challenge of sustaining momentum amid reopening offline institutions, yet it remains poised for rapid expansion, driven by government policies, rising internet penetration (over 800 million users, 13% annual rural growth), affordable smartphones (760 million users), and innovative startups.

The Indian EdTech market represents one of the world's largest and fastest-growing digital education ecosystems. The overall EdTech market was estimated to reach around $10.27 billion by 2025 (KPMG, 2022). Within this, online higher and lifelong education (professional skilling/upskilling) is estimated at around $5.0 billion by 2025. As of 2024, the Indian EdTech market is valued at $7.5 billion, with over 10,000 companies operating in the sector. With an expected compound annual growth rate (CAGR) of 27.65%, the industry is projected to reach $29 billion by 2030.

India's education and professional skill development market represents one of the world's most dynamic and opportunity-rich sectors. Underpinned by robust macro-economic fundamentals, rising household incomes, demographic dividends, and extensive government policy support, the sector is positioned for sustained high growth trajectory through 2030. The convergence of digital transformation, affordable technology access, and structural demand drivers - coupled with the essential nature of education as a non-discretionary investment - provides a resilient foundation for sector participants. Market consolidation toward quality-focused, outcome-verified, and specialized solutions is expected to characterize the next phase of industry evolution, benefiting well-positioned, governance-focused platforms with proven unit economics and measurable impact on learner outcomes. With over $29 billion in projected market value by 2030 and the potential to educate and upskill over 100 million paid users, India's EdTech sector stands poised to play a transformational role in building a skilled, globally competitive workforce while simultaneously addressing critical skill gaps across high-growth economic sectors.

Pros and strengths

Human resources, faculty members and content developer: The company has a total workforce of 26 personnel, comprising 22 permanent employees and 4 contractual personnel, engaged across various functional areas including management, finance, compliance, human resources, operations, sales and marketing, technology, and academic content development. Its senior management and key managerial personnel oversee strategic direction, compliance, finance, and governance functions. The operations team supports day-to-day business activities, while the sales and marketing team focuses on demand generation and customer engagement. The technology function is supported through contractual personnel responsible for platform maintenance and digital delivery. The company also engages faculty members and content developers, including subject matter experts, who are responsible for academic content creation, review, and delivery of educational and skill-based programs. Its human resource base, supported by structured recruitment, training, and performance monitoring processes, enables efficient execution of its business strategy and supports scalable growth. The management considers its employees and faculty ecosystem to be a key asset contributing to operational stability, academic quality, and business continuity.

Strong hybrid learning ecosystem: It operates across the online, hybrid, and offline spectrum, providing a differentiated value proposition through its AI-powered Education OTT platform, multi-lingual content library, regional academic focus, and the availability of both academic and skill development courses. Unlike platforms that rely solely on online distribution, its model integrates digital delivery and offline centres, B2B institutional partnerships, and community-based distribution network, enabling broader reach in regional, semi-urban, and rural markets. Its combines academic learning, skill courses, and government-linked employability programs under a single OTT and hybrid ecosystem. Pricing for its OTT subscription is positioned at an accessible level (Rs 1,250 annually for an all-content subscription), making it suitable for large-scale adoption across diverse socioeconomic segments. Through this blended operating model, it is positioned uniquely within the competitive landscape, serving multiple learner segments while maintaining operational scalability across India.

Robust digital education infrastructure: The company’s proprietary AI-powered Education OTT platform forms the technological backbone of its operations. Designed to serve millions of learners simultaneously, the platform integrates video streaming, learning management and interactive features, into a unified digital ecosystem. It hosts thousands of hours of recorded and live content through Klassroom Konnect across academics, skills, and professional domains. This platform includes modules for structured curriculum pathways, microlearning content, revision banks features and content on Academic skill and career. AI-driven Language model helps user learn in their regional language with 5 languages already live for a few topics currently.

Risks and concerns

Significant portion of revenues drives from key geographic markets: It derives a significant portion of its revenues from the sale of its services in certain key states. Its revenues from Uttar Pradesh constituted 42.60%, 46.86% and 57.16% of its total revenue from operations in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Revenues from Rajasthan accounted for 24.00%, 23.21% and 0.76% during Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively, while revenues from Maharashtra contributed 26.76%, 29.71% and 42.03% during the same periods. In addition, revenues from Haryana constituted 5.64% of its total revenue from operations in Fiscal 2026, while revenues from Karnataka constituted 0.62% during Fiscal 2026. Consequently, a substantial portion of its revenues is geographically concentrated in these states. Any adverse developments, including changes in state-specific regulations, economic conditions, political instability, natural calamities, or disruptions affecting its operations in such regions, could have an adverse impact on its business, results of operations, financial condition and cash flows.

Dependence on student acquisition and retention: Its ability to reactivate previously enrolled students further demonstrates recurring engagement and continued relevance of its offerings. It operates a blended education model comprising online and offline modes, with revenues generated from both segments. Its offline operations are supported by a network of centres, while its digital platform is strengthened by a broad range of educational content delivered by experienced faculty members. Its mobile application and digital distribution channels further enable it to expand reach and accessibility to students across multiple regions. However, its future growth and financial performance depend on its continued ability to maintain student interest, improve conversion of registered users into active subscribers, sustain engagement levels, ensure the quality and relevance of its content, and attract and retain qualified faculty members. Any failure to do so, including a decline in student enrolments, lower subscriber retention or reactivation rates, reduced usage of its platforms, or challenges in operating or scaling its offline centres, could adversely affect its business, reputation, results of operations, financial condition and cash flows.

Cybersecurity and information technology risks: Its education and coaching operations are significantly dependent on the reliable functioning of its information technology systems, digital platforms and OTT application, which support online classes, video-based content delivery, student enrolments, assessments, data management and administrative functions. The effective operation of its business depends on its ability to deploy, maintain and upgrade these systems in a timely and cost-effective manner. Its IT systems, OTT application and supporting networks may be vulnerable to system failures, power outages, hardware or software malfunctions, cyber-attacks, unauthorized access, data breaches, malware, or errors by employees, faculty members, subcontractors or third-party service providers. Any disruption, failure or security breach could result in interruption of live or recorded classes, restricted access to educational content, loss or compromise of student data, delays in assessments or fee processing, and degradation of student experience.  In the event of any such system disruption or cybersecurity incident, it may be required to incur significant time and costs to restore systems, recover data, enhance security measures and manage regulatory or contractual obligations. Further, any actual or perceived compromise of the reliability or security of its OTT application or digital platforms could adversely affect student and parent confidence, damage its brand reputation and expose it to legal or regulatory actions. Any such events could have a material adverse effect on its business, results of operations, financial condition and cash flows.

Outlook

Fusion Klassroom Edutech is an education technology company operating a scalable, AI-enabled hybrid learning ecosystem in India. It maintains strong relationships with private and institutional partners, including universities, global technology companies, publishing houses, and educational technology providers. Through publishing partnerships, the company develops digital textbooks, assessments, printed materials, and system-aligned content for students across the country. On the concern side, the academic education and coaching industry in India are intensely competitive and fragmented, with the presence of large organised education platforms, regional coaching institutes, digital education companies, as well as independent teachers and subject-matter experts offering courses through online platforms, social media and offline centres. Competition exists across multiple education categories, delivery formats and price points. A significant increase in competition may compel it to reduce course fees, offer higher discounts, extend promotional incentives or enhance service offerings to retain and attract students. Such pricing pressures and additional costs could adversely impact its margins, cash flows and profitability.

The company is coming out with a maiden IPO of 24,55,200 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 151-159 per equity share. The aggregate size of the offer is around Rs 37.07 crore to Rs 39.04 crore based on lower and upper price band respectively. On performance front, the revenue from operations of the company for FY25-26 was Rs 2,303.95 lakh as against Rs 1,008.65 lakh for FY24-25, an increase of 128.42%. Profit after tax for the FY25-26 was at Rs 760.12 lakh against profit after tax of Rs 290.42 lakh in FY24-25, a surge of 161.73%.

Meanwhile, it intends to develop, own, operate, and license proprietary AI-powered Education OTT platforms and SaaS-based systems, and to offer such OTT and SaaS platforms as a service to third parties for hosting, streaming, delivering, and managing educational and training content across multiple devices and languages. Going forward, it intends to partner with existing coaching classes, colleges, and educational institutions, and to establish, operate, and manage coaching centres, partner centres, skill development centres, training institutes, learning hubs, smart classrooms, digital studios, learning labs, and reading and learning libraries for conducting academic, competitive exam, vocational, and skill-based training programs through both physical (offline) and online modes, ensuring large-scale accessibility and quality delivery of education and skilling initiatives.