Fusion Klassroom Edutech Ltd. IPO

Fusion Klassroom Edutech Limited is an education technology company operating a scalable, AI-enabled hybrid learning ecosystem in India. The company was originally incorporated as Fusion Klassroom Edutech Private Limited on 3 November 2016 and was subsequently converted into a public limited company in 2025. Its registered office is located in Borivali East, Mumbai, Maharashtra.

The company provides academic education, competitive examination preparation, skill development and employability-oriented training through a combination of digital, offline and hybrid learning models. Its offerings cover school education, test preparation, professional courses, vocational programmes and emerging technology programmes including Artificial Intelligence and Machine Learning.

Fusion Klassroom's professional education offering includes coaching and learning programmes for examinations and courses such as CA, CS, CMA and other commerce-related examinations. The company combines traditional classroom instruction with digital learning platforms to provide students with flexibility in accessing educational content.

The company's business model operates through multiple channels, including B2C education OTT and offline learning, skill development and employability programmes, B2B2C arrangements and B2B and B2G institutional partnerships.

The company operates a hybrid learning ecosystem comprising 30 offline partner centres and an AI-powered Education OTT application. As disclosed in the RHP, the platform had more than 100 courses and over 3,300 hours of digital content. The company had recorded more than 6 lakh cumulative learner registrations, over 2 lakh subscribers and more than 1 lakh mobile app downloads.

Fusion Klassroom also provides learning devices and student-related educational supplies. Its product offering includes tablets, smart learning kits, digital accessories and device bundles that can be preloaded with the company's OTT platform and educational content.

The company's business has expanded beyond conventional coaching through skill-development and employability programmes. Fusion Klassroom has partnered with organisations including NSDC, TSSC and MSSDS for AI/ML training rollouts and has established AI/ML laboratories across Maharashtra. It has also worked with Maharashtra Skilling Apps and engaged with Tripura SCERT for academic and digital learning initiatives.

The company has developed partnerships with universities, technology companies, publishing houses, educational technology providers and institutional organisations. These partnerships support its ability to deliver educational content and skill-development programmes through multiple channels.

Its digital learning model allows students to access recorded and online educational content, while its offline partner-centre network provides classroom-based learning. The combination of online and offline delivery is intended to increase accessibility and provide different learning options to students.

Fusion Klassroom has also built a proprietary digital content library. As of the RHP, the company reported more than 100 courses and approximately 3,300 hours of digital content.

The company has also been involved in large-scale government and institutional projects. Its B2G and B2B partnerships provide exposure to institutional demand for skill development, employability training and educational programmes.

The company was founded by Alka Nikhil Javeri, Dhruv Nikhil Javeri and Dhumil Nikhil Javeri, who are also its promoters. The RHP identifies these three individuals as the promoters of the company.

The company's promoter holding was 55.07% before the IPO and reduced to 39.53% after the issue. The change reflects dilution resulting from the Fresh Issue and the company's post-issue capital structure.

The company reported substantial growth in its financial performance. Revenue from operations increased from ₹4.58 Cr in FY2024 to ₹10.09 Cr in FY2025 and ₹23.04 Cr in FY2026. Total income increased from ₹4.62 Cr in FY2024 to ₹10.11 Cr in FY2025 and ₹23.10 Cr in FY2026.

Profit After Tax increased from ₹0.34 Cr in FY2024 to ₹2.90 Cr in FY2025 and ₹7.60 Cr in FY2026. EBITDA increased from approximately ₹1.02 Cr in FY2024 to ₹4.06 Cr in FY2025 and ₹12.99 Cr in FY2026.

The company reported FY2026 net worth of ₹18.41 Cr, total assets of ₹25.46 Cr and total borrowings of ₹3.43 Cr. In FY2025, the corresponding figures were ₹10.03 Cr, ₹12.06 Cr and ₹1.01 Cr.

The company generated ₹10.71 Cr of net cash from operating activities in FY2026, compared with ₹3.55 Cr in FY2025 and ₹0.94 Cr in FY2024. At the same time, investing activities resulted in negative cash flows of ₹12.44 Cr in FY2026, ₹5.95 Cr in FY2025 and ₹1.76 Cr in FY2024.

The IPO was structured as a combination of Fresh Issue and Offer for Sale. The Fresh Issue comprised 19,89,400 shares, while the Offer for Sale comprised 4,65,800 shares. The company also reserved 1,23,200 shares for the Market Maker.

The Fresh Issue proceeds were intended for repayment or prepayment of borrowings, technology and AI/ML development, servers and cloud infrastructure, content development, procurement of desktops and laptops for new offline centres and AI/ML laboratories, marketing initiatives and general corporate purposes/inorganic growth.

Fusion Klassroom had an anchor allocation of 6,96,800 shares at ₹159 per share, aggregating to approximately ₹11.08 Cr. The anchor allocation was finalised on 30 July 2026.

The company operates in a highly competitive education industry. The RHP specifically notes competition from organised education platforms, regional coaching institutes, digital education companies and independent teachers and subject-matter experts offering courses through online platforms, social media and offline centres.

The company also faces customer concentration risk. According to the RHP, its Top 1 customer contributed 54.76% of total revenue in FY2024, 39.43% in FY2025 and 40.11% in FY2026. Although the concentration moderated from FY2024, dependence on a limited number of customers and institutional partners remains a risk.

The RHP also identifies geographic concentration as a business risk. Concentration of service sales in particular states can expose the company to local economic, social, political, demographic and other regional factors.

As disclosed in the RHP, the company did not own the properties from which it operated. The business therefore remains dependent on leased or other arrangements for its operating locations.

Fusion Klassroom Edutech operates in the education technology and coaching sector through a hybrid model that combines digital learning, offline partner centres and institutional programmes. Its business model is diversified across B2C, B2B2C, B2B and B2G channels.

The company has built an AI-enabled Education OTT platform with more than 100 courses and over 3,300 hours of digital content. It also operates through 30 offline partner centres and has reported more than 6 lakh cumulative learner registrations.

Its professional education portfolio includes CA, CS, CMA and other commerce-related examinations, while its skill-development activities provide exposure to AI/ML and employability-oriented programmes.

The company's institutional relationships are another important component of its business. Partnerships with NSDC, TSSC and MSSDS and engagements involving Maharashtra and Tripura provide exposure to institutional and government-supported education and skilling programmes.

Financial performance improved substantially during the period under review. Total income increased from ₹4.62 Cr in FY2024 to ₹10.11 Cr in FY2025 and ₹23.10 Cr in FY2026. PAT increased from ₹0.34 Cr to ₹2.90 Cr and then ₹7.60 Cr over the same period.

Revenue from operations increased by approximately 128% from FY2025 to FY2026, while PAT increased by approximately 162% during the same period.

EBITDA also increased sharply to ₹12.99 Cr in FY2026 from ₹4.06 Cr in FY2025. The company reported an EBITDA margin of 56.38% for FY2026 and a PAT margin of 32.99%.

Net worth increased from ₹3.92 Cr in FY2024 to ₹10.03 Cr in FY2025 and ₹18.41 Cr in FY2026. Total assets increased from ₹4.48 Cr to ₹12.06 Cr and ₹25.46 Cr over the same period.

The company also generated positive operating cash flow of ₹10.71 Cr in FY2026. However, its investing cash flow remained negative at ₹12.44 Cr, indicating continued investment-related cash outflows.

At the upper price band of ₹159, the issue was valued at a reported pre-IPO P/E of 15.33x and post-IPO P/E of 19.49x based on the respective EPS figures of ₹10.37 and ₹8.16.

The company reported FY2026 ROE and RoNW of 53.45%, ROCE of 45.60%, EBITDA margin of 56.38%, PAT margin of 32.99% and debt-to-equity of 0.19. NAV was reported at ₹25.22 per share.

The IPO proceeds were focused on technology and AI/ML development, content creation, offline-centre equipment, marketing and repayment/prepayment of borrowings. This gives the issue a growth-oriented use of proceeds rather than being entirely an Offer for Sale.

At the same time, the RHP highlights several risks. The education sector is intensely competitive, and the company's ability to attract and retain students is important to its future performance. Customer concentration and geographic concentration also remain material considerations.

The company reported that its Top 1 customer contributed 40.11% of revenue in FY2026. This means that the loss or reduction of business from a major customer could have a meaningful effect on operations and financial performance.

Another consideration is the company's reliance on technology and digital infrastructure. Expansion of its AI-powered platform and AI/ML initiatives will require continued investment and effective execution.

Overall, Fusion Klassroom Edutech offers exposure to a hybrid education technology business with digital learning, offline centres, professional examination coaching, skill development and institutional partnerships. Its strong FY2026 revenue and profit growth, expanding learner base, digital content library and technology focus are positive factors. However, investors should carefully evaluate competition, customer concentration, geographic concentration, dependence on student acquisition, technology investment requirements and the risks disclosed in the RHP before making an investment decision.

Listing Performance

Fusion Klassroom Edutech shares were listed on BSE SME on 7 August 2026 at ₹170 per share against the issue price of ₹159. The listing gain was ₹11 per share, representing a gain of 6.92%.

Fusion Klassroom Edutech IPO applications were made through the ASBA process and applicable UPI mechanisms during the IPO bidding period. The minimum individual application was 2 lots, or 1,600 shares, requiring ₹2,54,400 at the upper price band of ₹159.

Through UPI

1. Log in to your stockbroker app or website.
2. Go to the IPO section.
3. Select Fusion Klassroom Edutech IPO.
4. Enter the required number of lots.
5. Enter your valid UPI ID.
6. Submit the IPO application.
7. Approve the UPI mandate received in your UPI application.
8. Confirm the mandate using your UPI PIN.
9. The application amount remains blocked in your bank account until the allotment process.
10. If shares are allotted, the applicable amount is debited; otherwise, the blocked amount is released according to the IPO process.