A hybrid edtech company operating an AI-powered Education OTT App and 30 offline learning centres plans to raise Rs 39.04 crore via the BSE SME platform.
Fusion Klassroom Edutech Ltd., an education technology company running hybrid learning solutions across academic, vocational, and skill development segments, opens for subscription on July 31 with the issue closing on August 4. The company is listing on the BSE SME platform.
What the Company Does
Operational since 2016 and operating under the Klassroom brand, FKEL runs a hybrid model combining an AI-powered Education OTT App with 30 offline partner centres and a pan-India distribution network of NGOs, trusts, and institutional partners. Its cumulative learner base has crossed 600,000 registered users, with over 2 lakh active subscribers and more than 1 lakh mobile app downloads as of the RHP date.
The platform covers school academics for Grades 6–12, JEE and NEET preparation, vocational skilling, AI and ML training, professional upskilling, and employability programmes. The OTT app offers over 100 courses spanning 2,500 hours of recorded content, live classes, assessments, and personalised learning pathways in multiple languages. Learner analytics and multi-format instruction are built into the platform architecture.
On the government and institutional side, FKEL has executed projects under PM Shri Schools and Jawahar Navodaya Vidyalaya, signed a formal MoU with the Government of Rajasthan, delivered an RSLDC skilling project, and run a girl-child digital education initiative in Uttar Pradesh. Partnerships include NSDC, TSSC, and MSSDS, with integrations across state skilling platforms. FY26 saw expansion into AI and ML labs in Maharashtra and engagement with Tripura SCERT.
Despite this operational breadth, the company had only 26 employees — including 4 on contract — at the time of filing, reflecting the asset-light, platform-first nature of the business.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | July 31, 2026 |
| Issue Closes | August 4, 2026 |
| Listing | BSE SME |
| Price Band | Rs 151 – Rs 159 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 39.04 crore |
| Fresh Issue | Rs 31.63 crore |
| OFS | Rs 7.41 crore |
| Lot Size | 800 shares (min 2 lots = 1,600 shares) |
| Min. Retail Investment | Rs 2,54,400 |
| Post-IPO Market Cap | Rs 148.14 crore |
| IPO Constitutes | 26.35% of post-IPO equity |
| BRLM | Narnolia Financial Services Pvt. Ltd. |
| Registrar | Maashitla Securities Pvt. Ltd. |
| Market Maker | Pune E-Stock Broking Ltd. |
From fresh issue proceeds: Rs 6.71 crore for technology, AI/ML development, servers and cloud infrastructure; Rs 5.35 crore for content development; Rs 5.22 crore for marketing; Rs 1.95 crore for hardware for new offline centres; Rs 2.36 crore for debt repayment; balance for general corporate purposes. Post-IPO, paid-up equity expands from Rs 7.33 crore to Rs 9.32 crore — a small base that points to a long road before mainboard migration becomes feasible.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 4.62 | 10.11 | 23.10 |
| PAT | 0.34 | 2.90 | 7.60 |
| PAT Margin | 7.50% | 28.79% | 32.99% |
| RoCE | 12.41% | 29.92% | 45.60% |
Revenue grew from Rs 4.62 crore in FY24 to Rs 23.10 crore in FY26 — a genuine rapid scaling story for a platform-first edtech business. PAT moved from near-zero at Rs 0.34 crore to Rs 7.60 crore over the same period. Average EPS is Rs 8.87 and average RoNW is 42.79%.
The numbers that draw scrutiny are the PAT margin of 32.99% and RoCE of 45.60% in FY26 — both well above what listed edtech peers report, something the analyst flags as a big surprise. Rising trade receivables in FY25 and FY26 — a structural feature of government-linked edtech where payment cycles are long — add a cash conversion concern to the picture.
At the upper band of Rs 159, the P/E is 19.49x on FY26 earnings and 50.96x on FY25 earnings. Listed peers MPS Ltd (24.4x), Arihant Academy (30.9x), and Verand Learning (94.9x) are cited for reference, though the comparison is directional at best given structural differences.
BRLM Track Record: This is the 22nd mandate from Narnolia Financial Services in the last three fiscals. Of the last 10 listings, 3 opened at a discount and the rest with premiums ranging from 18.39% to 90%.
Risks to Consider
PAT margins of 33% on Rs 23 crore revenue in an edtech company with 26 employees, 30 offline centres, and government project dependency are difficult to reconcile with the cost structure typical of the sector — content creation, platform maintenance, sales and distribution, and government project delivery are all inherently high-cost activities.
The sustainability concern is significant. Revenue nearly quintupled from FY24 to FY26, but this rapid scaling has not been validated across a full cycle — including government project renewals, which are not guaranteed. Higher trade receivables — common in government-linked edtech businesses — create cash flow vulnerability. The OFS component of Rs 7.41 crore means some proceeds exit with existing investors rather than funding the business. The company issued shares at prices ranging from Rs 377.52 to Rs 52,725 per share in pre-IPO rounds before a 400:1 bonus issue in December 2025 — a large bonus that created a low per-share cost base and warrants careful scrutiny. The post-IPO paid-up capital is tiny, indicating the long road to mainboard migration.
Analyst View
Analysts note that the company marked progress in its top and bottom lines for the reported periods, but the super profits posted in FY26 raise eyebrows and concern over sustainability in a highly competitive and fragmented edtech segment. The PAT margins significantly outperform listed peers. The issue appears aggressively priced based on recent earnings, note analysts