Klassroom Eyes Q2 FY27 IPO on BSE SME
A woman presents skill-based courses on a large screen in a modern classroom.
Key Highlights
Edtech startup Klassroom secures in-principle approval for its Q2 FY27 IPO on the BSE SME platform, aiming for strategic expansion and capital infusion.
Klassroom Targets Listing on SME Platform
Edtech startup Klassroom is set to launch its initial public offering () on the BSE SME platform, targeting the second quarter (July to September) of fiscal year 2027. The company has already secured in-principle approval from the BSE to proceed with its public offering, marking a significant milestone in its growth trajectory.
This strategic move positions Klassroom among a growing number of venture-backed startups opting for public markets, signaling a renewed interest in IPO activity within the Indian startup ecosystem. The planned listing aims to provide crucial capital for strategic expansion and operational enhancements, supporting its hybrid learning model.
IPO Structure and Strategic Fund Utilization
The proposed IPO includes a fresh issue of up to 19.89 lakh equity shares, alongside an offer-for-sale () of up to 4.66 lakh shares. This dual approach will allow the company to raise new capital directly while also providing an exit opportunity for existing shareholders who wish to divest part of their holdings.
Klassroom intends to allocate ₹5.35 crore from the IPO proceeds towards bolstering its content development initiatives. This investment will specifically focus on sharpening educational video production, enhancing subtitles and audio review processes, and expanding its offerings to include skill-based courses such as AI & ML, Agentic AI, sales training, and customer support programs, catering to evolving market demands.
Additionally, the edtech firm plans to deploy ₹1.68 crore to upgrade its technological infrastructure. This allocation covers critical areas like cloud hosting, API development, backend infrastructure improvements, hiring specialized AI engineers, and ensuring robust app maintenance and seamless integrations with various universities and government systems, thereby enhancing its service delivery capabilities.
Company Profile and Operational Model
Founded in 2016 by Alka Javeri and her sons Dhruv and Dhumil Javeri, Klassroom operates a distinctive hybrid learning platform. This innovative model effectively combines traditional offline coaching centers with a modern education OTT (Over-The-Top) application, catering to a diverse student base across India with flexible learning options.
The startup boasts a substantial user base, with over 4 lakh registered users and more than 1 lakh subscribers actively utilizing its platform for various educational needs. Its operational footprint extends through a network of 30 partner centers established across the country, significantly enhancing its reach and service delivery capabilities in both urban and semi-urban areas.
Klassroom generates revenue through a multifaceted approach, encompassing direct consumer subscriptions, collaborations with partner centers, strategic enterprise partnerships, and various government projects. Beyond its core academic coaching programs, the company actively engages with state governments, universities, and private organizations on initiatives spanning digital learning, comprehensive teacher training programs, AI labs development, and broader skilling initiatives aligned with national educational goals.
Strong Financial Performance Fuels Public Ambitions
Ahead of its anticipated public listing, Klassroom has demonstrated a significant improvement in its financial performance. According to its Draft Red Herring Prospectus (DRHP), the company reported a robust operating revenue of ₹12.4 crore and a net profit of ₹4 crore during the first half of fiscal year 2026, showcasing strong operational efficiency.
This impressive half-year performance follows an exceptional fiscal year 2025, where its operating revenue surged by 120% year-on-year to reach ₹10.1 crore. Concurrently, the company’s net profit experienced a nearly eightfold increase, climbing to ₹2.9 crore, highlighting robust growth and profitability in a competitive edtech landscape.
The edtech startup has previously secured more than $2 million in funding from a diverse group of investors, reflecting confidence in its business model and growth prospects. Notable backers include LetsVenture, ah! Ventures, Growth Sense, CPT Family Trust, and prominent actor-investor Suniel Shetty, providing a strong financial foundation.
Klassroom’s decision to go public coincides with a broader resurgence in startup IPO activity within the Indian market. Recent examples of venture-backed companies that have successfully entered the public markets in the last year include PhysicsWallah, Capillary Technologies, Pine Labs, Groww, and Urban Company, reflecting a favorable market sentiment for new listings and investor appetite for growth-oriented businesses.