Mumbai-based EdTech company Fusion Klassroom Edutech Limited has taken a major step towards becoming a publicly listed company. The firm has received in-principle approval from the Bombay Stock Exchange (BSE) for its proposed Initial Public Offering (IPO) on the BSE SME platform.
The approval comes after the company filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) earlier this year. With the exchange’s approval now in place, Klassroom can move forward with its IPO plans, depending on market conditions and other regulatory requirements.
The approval will remain valid for 12 months, giving the company enough time to decide the right market conditions for launching the issue. The development marks an important milestone for the EdTech startup as it looks to raise funds for future growth and expansion.
IPO Details and Use of Funds
As per the DRHP, the proposed IPO will consist of up to 24.55 lakh equity shares. The issue has two parts – a fresh issue of up to 19.89 lakh shares and an Offer for Sale (OFS) of up to 4.66 lakh shares by existing shareholders.
The money raised through the fresh issue will be used for several business purposes. One of the key priorities is reducing debt by repaying or prepaying some of the company’s existing borrowings.
Klassroom also plans to invest in strengthening its technology infrastructure. The company wants to improve its Artificial Intelligence (AI) and Machine Learning (ML) capabilities to support better learning solutions and educational services.
Apart from technology upgrades, the company will use the funds to develop new educational content and products. A part of the proceeds will also be spent on marketing activities to increase brand awareness and reach more students across different regions.
The OFS portion will allow some promoters and early investors to sell part of their holdings and unlock value from their investments.
Revenue Growth Supports IPO Plans
A major reason behind Klassroom’s IPO journey is its strong financial performance. The company reported a revenue growth of around 120% in the financial year 2025, making it one of the fast-growing players in India’s EdTech sector.
This sharp rise in revenue has attracted attention from investors and market watchers. The company’s improved financial position is seen as a key factor supporting its move towards a public listing.
Before filing for the IPO, Klassroom completed an important corporate restructuring process. In November 2025, the company’s board approved a resolution to convert the business from a private limited company to a public limited company.
Following the change, its official name was updated from Fusion Klassroom Edutech Pvt Ltd to Fusion Klassroom Edutech Limited. This conversion was necessary for the company to proceed with its stock market listing plans.
Suniel Shetty Connection and Expansion Plans
Many media reports have referred to Klassroom as a “Suniel Shetty-backed” EdTech company. However, the company has clarified that the Bollywood actor is not an investor in the business.
According to the company, Suniel Shetty is associated with Klassroom as a mentor and supports some of its social initiatives, including scholarship programmes for underprivileged students. The company has stated that reports describing him as a shareholder or investor are incorrect.
Looking ahead, Klassroom plans to expand its presence in both Indian and international markets. Earlier reports had highlighted the company’s interest in regional as well as global growth opportunities.
The proposed SME IPO is expected to provide the company with additional funds and greater visibility in the market. With strong revenue growth, a focus on technology and content development, and approval from the BSE already secured, Fusion Klassroom Edutech is preparing for the next stage of its growth journey as a publicly listed company.