Edtech company Klassroom has taken a major step toward going public by submitting its Draft Red Herring Prospectus (DRHP) to India’s market regulator, SEBI, with plans to list on the SME segment of the Bombay Stock Exchange. The IPO will include both a fresh issue of shares and a partial exit opportunity for existing promoters and early investors through an offer-for-sale component.
Money raised through the fresh issue will primarily go toward clearing existing debt, upgrading its technology infrastructure with a focus on AI and machine learning, expanding content offerings, and boosting marketing efforts.
Founded in 2016, Klassroom serves students in Classes 8 to 12 through a hybrid model that combines an AI-driven online learning platform with a network of offline partner centres. The company has kept its expansion lean by growing through a franchise-based, asset-light approach rather than heavy capital expenditure.
What makes this IPO filing stand out is the timing and the financials behind it. While much of the edtech sector is still working its way back to health after years of funding challenges, Klassroom appears to be on stronger footing, having posted significantly improved revenue and bottom-line numbers in FY25.
