Klassroom, an Indian edtech startup, has received in-principle approval from the Bombay Stock Exchange for its upcoming IPO. This step has brought the company closer to the stock market. The IPO will take place on the BSE SME platform. The approval has created fresh interest in the Indian edtech sector, which has faced many ups and downs in recent years.
The company now plans to launch its IPO in the second quarter of FY27. This period falls between July and September 2026. Through this public issue, Klassroom wants to raise funds for expansion, technology upgrades, and new educational programs. The move also shows that smaller startups in India still see strong opportunities in the public market.
Details of the Share Sale
Klassroom has prepared a mix of fresh shares and offer-for-sale shares for the IPO. The fresh issue will include up to 19.89 lakh equity shares. At the same time, existing shareholders will sell up to 4.66 lakh shares through the offer for sale route. This structure will help the company raise fresh capital while also giving some investors a chance to reduce their holdings.
The approval from BSE is an important milestone for the startup. Before a company enters the stock market, it must pass several checks and meet many rules. The exchange studies the company’s business model, finances, operations, and legal details. After this process, Klassroom received the in-principle nod for its IPO plan.
Journey of the Company
Klassroom was founded in 2016 by Alka Javeri along with her sons Dhruv Javeri and Dhumil Javeri. The company entered the education sector with a goal to make learning simple and accessible for students across India. Since its launch, the startup has focused mainly on students from Classes 8 to 12. It also provides support for competitive exam preparation.
The company follows a hybrid education model. This means it combines offline coaching with online learning services. Students can attend physical classes while also using digital tools and online study material. This model became more popular after the pandemic because many families started to prefer flexible learning options.
Plans for IPO Funds
Klassroom now plans to use the IPO funds for several major projects. One large part of the investment will go into content development. The startup wants to launch courses related to artificial intelligence, machine learning, sales training, and customer support. These subjects have become popular because many students now search for skill-based education that can improve job opportunities.
The company also plans to strengthen its technology systems. It wants better cloud support, stronger APIs, and advanced AI tools. Technology has become a key part of modern education businesses. Students now expect smooth online platforms, quick access to study material, and better digital experiences. Through these upgrades, Klassroom hopes to improve learning quality and attract more users.
Marketing and business expansion will also receive a part of the IPO funds. The startup wants to reach more cities and students across India. Competition in the edtech sector remains very high, with many firms trying to build strong brands. Marketing can help Klassroom increase visibility and grow its student base in both large and small cities.
Strong Financial Growth
The company’s financial performance has also shown strong growth. In FY25, Klassroom reported revenue of ₹10.1 crore. In FY24, the company had posted revenue of ₹4.6 crore. This sharp rise shows that the startup has expanded its business within a short period.
Profit numbers have also improved. The company reported net profit of ₹2.9 crore in FY25. A year earlier, profit stood at ₹34.4 lakh. This rise in profit may increase investor confidence because many startups often struggle to achieve profitability.
The company also shared financial data for the six months ended September 2025. During this period, Klassroom reported revenue of ₹12.4 crore. Profit during the same period came close to ₹4 crore. These figures suggest that the company continued to maintain strong business momentum.
Changes in the Edtech Sector
India’s edtech sector has seen many changes over the past few years. During the pandemic, online education firms recorded rapid growth because schools and coaching centres remained closed. After normal classroom education returned, several startups faced slower growth and financial pressure. Some firms reduced staff, cut costs, or delayed expansion plans.
Despite these challenges, companies with stable business models and better financial discipline continue to attract investor attention. Klassroom’s IPO approval may show that investors still believe in the long-term future of the education technology market in India.
Importance of the SME IPO Route
The SME IPO route has become a preferred option for many smaller startups and growing businesses. It allows companies to enter the stock market with fewer hurdles compared to larger mainboard IPOs. Through SME listings, startups can raise capital, improve brand value, and gain wider market recognition.
For Klassroom, a public listing may create several new opportunities. The company can use fresh funds for expansion and build stronger trust among students, parents, and business partners. Listed companies often receive better visibility because financial details become public and transparent.
Competition in the Education Market
The IPO may also help the company compete with larger education firms. India already has many major edtech brands that spend heavily on technology and advertising. Smaller firms need strong financial support to survive in such a competitive market. Public funding can provide the extra push required for long-term growth.
Another important factor is the growing demand for skill-based education. Many students now want practical courses that can help them secure jobs in fast-growing sectors. Subjects like AI and machine learning have become highly popular because companies across industries now use advanced technology tools.
Klassroom’s decision to add these courses may help the company attract a wider student audience. It may also open new revenue opportunities outside traditional school education. This expansion into skill development could become a key growth driver in the coming years.
Future Outlook for Klassroom
Experts believe that India’s education sector still has huge growth potential. A large young population, rising internet use, and higher smartphone access continue to support online education services. At the same time, many parents now accept digital learning as a normal part of education.
Klassroom’s IPO journey will now remain under close watch in the startup and investment community. Market conditions, investor mood, and company performance will play a major role in the success of the public issue. If the IPO receives a strong response, it could encourage more small edtech startups to explore public listings in the future.
The approval from BSE marks an important chapter for Klassroom. The company has moved from a growing startup to a business preparing for the public market. With expansion plans, new technology investments, and stronger financial performance, Klassroom now hopes to build a larger presence in India’s fast-changing education sector.
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