Klassroom Edtech Startup Files for IPO on the BSE SME Platform

Klassroom, an edtech startup, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India to initiate an initial public offering on the SME platform of the Bombay Stock Exchange, as indicated in its regulatory filings. This proposed IPO includes a combination of a fresh equity share issue and an offer-for-sale (OFS) from existing stakeholders.

Usage of IPO Proceeds

As outlined in the DRHP, the funds obtained from the new share issue will be allocated for various purposes, including debt repayment and enhancing its technology stack, particularly in AI and ML capabilities, as well as content creation and marketing strategies. The OFS component will provide select promoters and initial investors the opportunity to reduce their stakes partially.

Company Background

Klassroom transitioned into a public limited company in November of last year, a milestone that was first exclusively shared by Startup Superb. Established in 2016, Klassroom functions within a hybrid learning framework, integrating its AI-powered educational OTT platform with a network of offline partner centres. The company targets students from Classes 8 to 12, offering both recorded and live classes while expanding through a franchise-led, asset-light model.

Current Market Position and Financial Performance

The filing occurs at a time when the edtech industry is experiencing a cautious recovery following a prolonged funding winter. Unlike many venture-backed competitors still striving for profitability, Klassroom has showcased improvements in its financial performance.

Financial Highlights

In terms of finances, the company’s revenue from operations surged by 120% to Rs 10.1 crore in FY25, up from Rs 4.6 crore in FY24. Its net profit skyrocketed nearly eight times to Rs 2.9 crore in FY25 compared to Rs 34.4 lakh the previous year. For the six months ending September FY26, Klassroom reported Rs 12.4 crore in operating revenue alongside a net profit of approximately Rs 4 crore.