Fusion Klassroom Edutech IPO is a book-built issue worth ₹39.04 crore, comprising a fresh issue of 0.20 crore shares aggregating ₹31.63 crore and an offer for sale of 0.05 crore shares worth ₹7.41 crore. The IPO opens for subscription on July 31, 2026, and closes on August 4, 2026.
The basis of allotment is expected on August 5, 2026, while the shares are proposed to be listed on the BSE SME platform on August 7, 2026. The price band has been fixed at ₹151–₹159 per share, with a lot size of 800 shares. Retail investors must apply for a minimum of 1,600 shares, requiring an investment of ₹2,54,400 at the upper price band. Narnolia Financial Services Ltd. is the book-running lead manager, Maashitla Securities Pvt. Ltd. is the registrar, and PUNE E-STOCK BROKING Ltd. is the market maker.
Company Overview
Fusion Klassroom Edutech Limited is an education technology company that delivers academic, vocational, and skill-based learning through a hybrid model combining digital and offline education. Founded in 2016, the company has built an AI-powered Education OTT platform alongside a network of 30 partner learning centres, enabling students to access recorded courses, live classes, assessments, and personalised learning across multiple subjects and skill areas.
The company serves school students, competitive exam aspirants, professionals, and learners seeking employability-focused training in emerging technologies such as artificial intelligence and machine learning. As of Fiscal 2026, its platform had over 600,000 registered users, more than 200,000 subscribers, and over 100 courses.
Fusion Klassroom also works closely with government bodies, universities, skill development missions, and institutional partners to deliver large-scale education and training programmes across India. Its diversified revenue model includes digital subscriptions, offline coaching, government projects, institutional partnerships, licensing, and educational content sales. By combining technology with classroom learning, the company aims to make quality education more accessible, affordable, and employment-oriented across the country.
Industry Context
- India’s EdTech industry is witnessing strong long-term growth, supported by rising internet penetration, affordable smartphones, favourable government initiatives, and increasing demand for digital, hybrid, and skill-based learning solutions.
- Growing adoption of online education, professional upskilling, and AI-powered personalised learning is expanding opportunities across K-12 education, competitive exam preparation, higher education, and vocational training.
- Government initiatives such as the National Education Policy (NEP) 2020, PMKVY, DIKSHA, and SWAYAM are accelerating digital learning adoption while strengthening India’s education and skilling ecosystem.
- The shift towards hybrid learning models, combining classroom teaching with digital platforms, is creating new opportunities for education providers to deliver accessible, flexible, and outcome-focused learning experiences.
- India’s large student population, increasing focus on employability, and growing demand for future-ready skills such as artificial intelligence, data science, and cloud computing continue to drive sustained growth in the education sector.
Business Strengths
- The company combines online learning, offline partner centres, and institutional collaborations, creating multiple revenue streams while serving students, professionals, businesses, and government organisations across India.
- Its AI-powered education platform and proprietary digital content enable scalable course delivery, personalised learning experiences, and efficient expansion without significant additional infrastructure investments.
- Strong partnerships with government bodies, universities, and skill development organisations enhance credibility, support large-scale project execution, and create opportunities for long-term business growth.
- A diversified portfolio covering school education, competitive exams, professional courses, and emerging technologies such as AI and machine learning helps address evolving learner and industry requirements.
- With over nine years of operating experience, a growing learner base, and recognised industry achievements, the company has established a trusted brand in India’s expanding education technology ecosystem.
Business Risks
- The company operates from leased premises, and any difficulty in renewing lease agreements or relocating operations could disrupt business activities and increase operating costs.
- Continued negative operating cash flows may affect the company’s ability to fund expansion plans, manage working capital efficiently, and support future business growth.
- A substantial share of revenue comes from a few key states, making the business vulnerable to regional economic conditions, regulatory changes, or operational disruptions.
- The company’s future growth depends on attracting and retaining students. Lower enrolments or reduced learner engagement could adversely affect revenue, profitability, and brand reputation.
- The company has reported certain historical regulatory and GST compliance delays. Although these have been resolved, any future compliance lapses could result in penalties or reputational risks.
Financial Performance
Fusion Klassroom Edutech Limited – Financials (₹ in lakh)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
|---|---|---|---|
| Revenue from Operations | 2,303.95 | 1,008.65 | 458.30 |
| Total Income | 2,310.21 | 1,010.58 | 462.39 |
| EBITDA | 1,299.00 | 406.35 | 101.54 |
| Profit After Tax | 760.12 | 290.42 | 34.38 |
| Net Worth | 1,841.47 | 1,002.62 | 391.74 |
| Return on equity (%) | 53.45% | 41.66% | 13.08% |
| Return on Capital Employed (in %) | 45.60% | 29.92% | 12.41% |
(Source: RHP)
Key Ratios & Metrics
| Key Performance Indicator (KPI) | As of March 31, 2026 |
|---|---|
| Return on Equity (ROE) | 53.45% |
| Return on Capital Employed (ROCE) | 45.60% |
| Debt-to-Equity Ratio | 0.19 |
| Return on Net Worth (RoNW) | 53.45% |
| Profit After Tax (PAT) Margin | 32.99% |
| EBITDA Margin | 56.38% |
| Net Asset Value (NAV) | 25.22 |
| Price to Book Value | 6.30 |
(Source: RHP)
IPO Details
| Particulars | Details |
|---|---|
| IPO Date | 31 July – 4 August, 2026 |
| Allotment | Wednesday, August 5, 2026 |
| Listing Date | Friday, August 7, 2026 |
| Face Value | ₹10 per share |
| Price Band | ₹151 to ₹159 per share |
| Lot Size | 800 Shares |
| Issue Type | Book Building IPO |
| Sale Type | Fresh capital cum OFS |
| Total Issue Size | 24,55,200 shares (agg. up to ₹39 crore) |
| Fresh Issue | 19,89,400 shares (agg. up to ₹31.63 crore) |
| Reserved for Market Maker | 1,23,200 shares (agg. up to ₹2 crore) |
| Offer for Sale (OFS) | 4,65,800 shares of ₹10 (agg. up to ₹7 crore) |
| Shareholding Pre-Issue | 73,27,473 shares |
| Shareholding Post-Issue | 93,16,873 shares |
| Listing Exchange | BSE, SME |
(Compiled from RHP and market updates)
Objects of the Offer
The company proposes to utilise the net proceeds from the fresh issue towards the following objects:
- Debt Repayment: A portion of the net proceeds will be used to repay or prepay certain outstanding borrowings, helping strengthen the company’s financial position.
- Technology & Business Expansion: The company will invest in AI/ML model development, cloud infrastructure, content creation, and IT equipment for new AI/ML labs at offline centres.
- Growth & Marketing: Funds will be allocated towards marketing initiatives, inorganic growth opportunities through acquisitions, and general corporate purposes.
- Offer for Sale (OFS): The proceeds from the Offer for Sale will be received by the selling shareholder. The company will not receive any funds from this portion of the issue.
Conclusion
Fusion Klassroom Edutech Limited operates in India’s expanding EdTech sector, supported by a hybrid learning model that combines digital education with offline partner centres. Its AI-powered platform, diversified course offerings, government partnerships, and multiple revenue streams position the company to benefit from the growing demand for technology-enabled education and skill development.
At the same time, investors should carefully evaluate risks such as negative cash flows, geographical revenue concentration, dependence on student enrolments, and execution challenges before making an investment decision.
Reviewing the company’s financial performance, valuation, business strategy, and the Red Herring Prospectus (RHP) is essential to determine whether the IPO aligns with individual investment objectives and risk appetite. Investors can also apply for and track SME IPOs seamlessly through the Paytm Money app.
Disclaimer: Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. This content is purely for informational purposes only and should not be considered as investment advice or a recommendation. Securities quoted are for illustration purposes only and not recommendatory. Investors are requested to do their own due diligence before investing.
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FAQs
1. What is the Fusion Klassroom Edutech IPO date?
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2. What is the price band and minimum investment for the Fusion Klassroom Edutech IPO?
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3. What does Fusion Klassroom Edutech Limited do?
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4. How will Fusion Klassroom Edutech use the IPO proceeds?
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The company plans to utilise the net proceeds from the fresh issue towards:
- Repayment or prepayment of certain outstanding borrowings.
- Investment in AI/ML model development, cloud infrastructure, content creation, and IT equipment for new AI/ML labs.
- Marketing initiatives, inorganic growth opportunities, and general corporate purposes.
The proceeds from the Offer for Sale (OFS) will be received by the selling shareholder, and the company will not receive any funds from that portion of the issue.
