Klassroom, an Indian edtech company blending offline coaching with digital learning, has received in-principle approval from BSE for its SME IPO, intending to list in the second quarter of FY27. The IPO will include fresh equity and an offer-for-sale component as the company seeks to expand its content and technology capabilities.
- IPO includes fresh issuance of 19.89 lakh shares and sale of 4.66 lakh shares
- Funds will support content development and technical infrastructure
- Financial performance shows over 120% revenue growth and rising profits
What happened
The startup filed its draft red herring prospectus in February and received regulatory clearance in May, progressing towards tapping public markets. Klassroom plans to raise capital primarily to strengthen its educational content, including video production and skill-focused courses on advanced topics like AI and sales training, as well as to upgrade cloud hosting and app infrastructure.
Why it matters
Klassroom’s move to go public highlights growing investor confidence in Indian edtech companies and the increasing appetite for technology-driven hybrid education platforms. The company reported a 120% year-on-year increase in operating revenue to ₹10.1 crore in FY25, alongside an almost eightfold rise in net profit to ₹2.9 crore. For the first half of FY26, revenue reached ₹12.4 crore with a net profit of ₹4 crore.
The capital raised from the IPO will fuel further expansion of Klassroom’s digital and offline learning offerings and infrastructure, positioning it to capture a larger share of India’s growing education market. The listing follows a recent resurgence in startup IPO activity across sectors including edtech, fintech, and services.
What to watch next
Market participants and investors will closely observe Klassroom’s IPO pricing, subscription levels, and listing performance when it hits the SME platform in Q2 FY27. The effectiveness of the company’s investments in technology and content will also be a key indicator of its ability to sustain growth and profitability in a competitive landscape.
Additionally, Klassroom’s progress on partnerships with government bodies, universities, and enterprises for digital learning and skilling initiatives may provide further growth avenues. Its ability to scale user acquisition and subscription revenues will be critical factors to track post-IPO.