Klassroom files DRHP for SME IPO; revenue jumps 120% in FY25

Edtech startup Klassroom has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India to launch an initial public offering on the SME platform of the Bombay Stock Exchange, according to its regulatory filings.

The proposed IPO comprises a mix of fresh issue of equity shares and an offer-for-sale (OFS) by existing shareholders.

According to the DRHP, the proceeds from the fresh issue will be used for debt repayment, strengthening its technology stack, including AI/ML capabilities, content development, and marketing initiatives. The OFS component will allow select promoters and early investors to pare their stakes partially.

The company also converted itself into a public limited entity in November last year; the development was first exclusively reported by Entrackr.

Founded in 2016, Klassroom operates a hybrid learning ecosystem that blends its AI-powered education OTT platform with a network of offline partner centres. The company focuses on students from Classes 8 to 12, offering recorded and live classes while expanding through a franchise-led, asset-light model. 

The filing comes at a time when the edtech sector is witnessing a measured recovery following a prolonged funding slowdown. Unlike several venture-backed peers that are still chasing profitability, Klassroom has reported improving bottom-line performance.

In terms of financials, the company’s revenue from operations grew 120% to Rs 10.1 crore in FY25 from Rs 4.6 crore in FY24. Its net profit jumped nearly eightfold to Rs 2.9 crore in FY25 compared to Rs 34.4 lakh a year earlier. For the six months ended September FY26, Klassroom reported Rs 12.4 crore in operating revenue with a net profit of around Rs 4 crore.