Fusion Klassroom Edutech Limited has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an Initial Public Offering (IPO). The Mumbai-based EdTech company operates a hybrid learning ecosystem combining offline partner centres with an AI-powered Education OTT platform. With a reported revenue surge of ~403% over two years, the company aims to list on the SME platform, with the IPO scheduled to open on 31-Jul-2026.

Company Overview

Fusion Klassroom Edutech Limited, incorporated in 2016, serves over 6,00,000+ registered users across India through B2C, B2B2C, B2B, and B2G channels. The company offers 100+ courses spanning academic, vocational, professional, and skill-based education. Key operational metrics include:

• User Base: 6,59,048 total registered users, 2,66,986 subscribers, and 74,000 active users.
• Infrastructure: 30 offline partner centres across India.
• Content: AI-powered Education OTT application with 3,300+ hours of digital content.
• Recognition: Two-time finalist at National Startup Awards (2021 & 2023) and Gold Category Award from Business World.

The company holds MoUs with the Government of Rajasthan, PM Shri Schools, Jawahar Navodaya Vidyalaya, NSDC, TSSC, and MSSDS. Its revenue is diversified across digital subscriptions, offline centre fees, institutional licensing, and government projects.

Offer Details

The IPO is structured as a Fresh Issue with no Offer for Sale (OFS) component. While the price band and final issue size are not yet disclosed in the DRHP, the objects of the issue indicate a quantified requirement of ₹21.59 Crore. The key dates for the IPO are as follows:

Objects of the Issue: The proceeds will be utilized for:

• Technology & AI/ML Model Development: ₹6.71 Crore
• Content Development (Capital Expenditure): ₹5.35 Crore
• Marketing Initiatives: ₹5.22 Crore
• Prepayment/Repayment of Outstanding Borrowings: ₹2.36 Crore
• Procurement of Desktops & Laptops for New Offline Centres: ₹1.95 Crore
• Inorganic Growth & General Corporate Purposes: Not quantified

Financial Highlights

The company has demonstrated significant growth in recent years, turning around from a loss in FY2023 to substantial profitability in FY2026.

Key ratios for FY2026 include a Return on Equity (ROE) of 53.45% and a Return on Capital Employed (ROCE) of 45.60%. Total assets grew from ₹4.48 Crore in FY2024 to ₹25.46 Crore in FY2026.

Risk Factors

Investors should note several material risks disclosed in the DRHP:

1. Negative Cash Flow from Investing Activities: The company reported negative investing cash flows of ₹-1.76 Crore (FY2024), ₹-5.95 Crore (FY2025), and ₹-12.44 Crore (FY2026), reflecting heavy capital expenditure.
2. Geographic Concentration: Approximately 93.36% of FY2026 revenue came from Uttar Pradesh (42.60%), Maharashtra (26.76%), and Rajasthan (24.00%).
3. Customer Concentration: The top customer contributed 40.11% of total FY2026 revenue, while the top 5 customers accounted for 75.65%.
4. Regulatory Compliance: The DRHP notes delays in statutory filings, including ROC forms delayed by up to 2,958 days and GST return delays of up to 55 days.
5. Low Active User Conversion: Of 6,59,048 registered users, only 74,000 are active, indicating a conversion rate of ~11.23%.

Valuation & Peer Comparison

Price band and issue size details are not available in the current DRHP data. Therefore, P/E multiples and peer comparisons cannot be calculated at this stage. Investors will need to wait for the Red Herring Prospectus (RHP) for valuation metrics. However, the company’s high ROE (53.45%) and expanding PAT margins suggest strong operational efficiency relative to its book value of ₹18.41 Crore.

Bottom Line

Fusion Klassroom Edutech presents a high-growth profile with robust revenue expansion and profitability. However, investors must weigh these gains against significant concentration risks in customers and geography, as well as regulatory compliance history. The IPO opens on 31-Jul-2026, with listing expected on 07-Aug-2026.