Edtech in India has spent the last couple of years learning a hard lesson: growth without profit does not impress anyone anymore. Against that backdrop, a small Mumbai-based edtech company is walking into the public markets with the one thing most of its peers have struggled to show, an actual profit.
Fusion Klassroom Edutech, the parent of hybrid learning platform Klassroom, has fixed its IPO price band at Rs 151 to Rs 159 per share, with the issue set to open on July 31 and close on August 4. The offering combines a fresh issue of nearly 19.89 lakh shares with an offer for sale of 4.66 lakh shares, aiming to raise around Rs 39 crore at the top end of the band, valuing the company at roughly Rs 148 crore.
What makes Klassroom's pitch to investors interesting is the numbers behind it. Operating revenue jumped 128% to Rs 23 crore in FY26, while net profit climbed to Rs 7.6 crore, translating into a PAT margin near 33% and return on equity above 53%, figures that would look strong in any sector, let alone one known for burning cash.
The company runs on a hybrid model, pairing 30 offline partner learning centres with an AI-driven OTT platform that leans on OpenAI's GPT and Google's Gemini for personalised learning, spanning K-12 education, competitive exam prep, and professional upskilling. It counts more than 6 lakh registered users and 2 lakh paying subscribers, built with backing from investors including actor Suniel Shetty, LetsVenture, and ah! Ventures.
Proceeds from the fresh issue are earmarked for technology and AI development, content creation, marketing, and expanding its offline footprint, alongside paying down existing debt. Shares are expected to list on the BSE SME platform on August 7, a modest listing by market-cap standards, but a rare profitable one in a sector that has spent far more time explaining its losses than celebrating its numbers.
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