Fusion Klassroom Edutech Limited

1. Overview

Fusion Klassroom Edutech Limited, incorporated in November 2016 and headquartered in Mumbai, Maharashtra, operates in the Indian education technology and skilling sector, delivering a hybrid model that combines an AI-powered Education OTT platform with a network of 30 offline partner centres, primarily concentrated in Maharashtra.

The Company's scale has expanded rapidly: from three coaching centres in its founding year to a current base of over 6 lakh registered users, 2 lakh+ paid subscribers, and 1 lakh+ mobile app downloads (rated 4.5 stars on the Google Play Store). Its digital content library spans 100+ courses and over 3,300 hours of proprietary academic, competitive-exam and skill-development content.

Klassroom positions itself between two extremes in the Indian edtech landscape: global-scale online-only platforms focused on higher education and professional certification, and domestic hybrid players narrowly focused on competitive-exam coaching (JEE/NEET) or K-12 tutoring. Klassroom differentiates through a combined academic, skilling and government-partnership offering delivered across online, offline and institutional (B2B/B2B2C/B2G) channels simultaneously, with a specific emphasis on regional-language content and semi-urban/rural reach.

2. Business Model and Revenue Streams

Multi-Channel Operating Model

Klassroom operates a B2C, B2B2C, B2B and B2G integrated model:

B2C (Direct-to-consumer): Subscription-based access to the Education OTT platform, priced at an accessible ₹1,250 per year for the individual all-content subscription (₹3,000/year for an enterprise version), aimed at broad affordability across income segments.

Offline centres: 30 partner centres (concentrated in Maharashtra) offering academic coaching for Classes 8–12, JEE/NEET test-preparation, professional courses (CA) and skill-development programs, at fees of approximately ₹25,000–₹45,000 per year per stream.

B2B2C / B2B / B2G / Institutional: Partnerships with state governments, private companies, educational institutions, central agencies, universities and skilling missions for digital content deployment, teacher training, AI/ML labs, hybrid learning programs and university-approved internships.

Revenue is drawn from digital subscriptions, course sales, offline centre fees, institutional licensing, government project implementation fees, white-labelled platform licensing, courseware/book sales, learning-device sales, sponsorship revenue, and channel-partner distribution.

Revenue Breakdown by Channel (Online vs. Offline)

The shift toward online revenue (76.48% of FY26 revenue, up from 63.81% in FY24) underlines the Company's transition toward a scalable, digitally-led model.

Revenue Breakdown by Category

B2B and Channel Partner categories together contributed 75.9% of FY26 revenue, reflecting Klassroom's growing dependence on institutional and government-linked distribution alongside its direct consumer base.

Client Concentration

The RHP discloses meaningful customer concentration, a factor investor should weigh carefully:

A single customer accounted for over 40% of FY26 revenue, and the top 10 customers together represented nearly 79% of revenue — a concentration risk common among B2B/B2G-oriented edtech players but one that merits close monitoring.

Geographic Concentration

Revenue remains concentrated in Uttar Pradesh, Maharashtra and Rajasthan, which together contributed over 93% of FY26 revenue — largely a function of the Company's government-partnership footprint (Rajasthan MoU, Uttar Pradesh digital education initiative) and its home-state offline centre network (Maharashtra).

Operating Metrics (Industry-Specific KPIs for EdTech)

3. Products and Service Portfolio

Klassroom's portfolio spans four principal product lines:

3.1 Education OTT Platform (Primary Revenue Driver)

The Company's proprietary AI-powered OTT platform is the technological core of its B2C and institutional licensing business, featuring:

100+ courses, 3,300+ hours of proprietary digital content across academics, competitive exams and skill development

Personalised content recommendations, custom playlists, and continuous engagement tracking

AI-generated multilingual subtitles and regional-language audio support (5 languages currently live for select content), aligned with NEP 2020

Licensable SaaS architecture enabling universities, colleges, training centres and corporates to adopt the platform for their own deployments via APIs

3.2 Offline Learning Centres (Established, Cash-Generative Segment)

30 partner centres, concentrated in Maharashtra, offering:

Academic coaching for Classes 8–12 aligned to board curricula

Test-preparation for JEE/NEET

Professional courses (CA)

Skill-development programs in AI/ML, data science, coding and entrepreneurship

3.3 Learning Devices, Student Kits and Educational Supplies (Emerging Segment)

Tablets, smart learning kits, digital accessories and device bundles preloaded with Klassroom's OTT content, sold both as combo packages to individual learners and deployed at scale through schools, skilling centres and government projects. Complementary branded stationery, workbooks and vouchers support onboarding, marketing and centre branding.

3.4 Study Notes, Books and Courseware

Proprietary and procured study materials, books and courseware supporting K-12, test-preparation and skill-development delivery across online, offline and institutional channels.

4. Key Business Strengths

• Diversified, multi-channel revenue architecture: Simultaneous B2C, B2B, B2B2C and B2G channels reduce dependence on any single distribution model, spanning digital subscriptions, offline fees, institutional licensing, and device/courseware sales.
• Deep government and institutional relationships: Executed MoUs and large-scale programmes with the Government of Rajasthan, PM Shri Schools, Jawahar Navodaya Vidyalayas, RSLDC, NSDC, TSSC and MSSDS, positioning Klassroom as a credible partner for public-sector education transformation.
• Proprietary, scalable technology backbone: An AI-powered OTT platform with multilingual capability, licensable SaaS architecture, and a large proprietary content library (100+ courses, 3,300+ hours) underpins both the B2C and institutional business.
• Affordable, accessible pricing: OTT subscription priced at ₹1,250/year, positioned to enable adoption across diverse socio-economic segments in urban, semi-urban and rural India.

5. Future Growth Strategy

• Deepen AI/ML and regional-language capability: Continued investment in AI-driven learning technologies, expansion of regional-language content beyond the current 5 languages, and dedicated AI/ML labs (already established across Maharashtra).
• Scale government and institutional partnerships: Build on existing relationships (Rajasthan, Uttar Pradesh, NSDC, TSSC, MSSDS, Tripura SCERT) to pursue further state-level skilling and digital-education mandates.
• Expand offline centre network selectively: Grow the partner-centre footprint beyond the current base of 30, while maintaining centre-level unit economics.
• Broaden the SaaS/licensing opportunity: Leverage the OTT platform's API-based architecture to license the technology to universities, colleges, training institutes and corporates as a third-party digital learning solution.
• Deepen content library and learning-device distribution: Continue expanding the 3,300+ hour content library and scale distribution of learning devices and courseware bundles, particularly through government and institutional channels.
• Utilise IPO proceeds for balance-sheet strengthening and infrastructure: Net Proceeds are earmarked for debt prepayment, technology/AI-ML infrastructure, content development, offline-centre equipment, and marketing (see Data Quality Flags for the General Corporate Purposes treatment).