Indian edtech startup Klassroom has taken a major step towards going public by filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an IPO on the Bombay Stock Exchange (BSE) SME platform. This move follows strong growth and improved profits, suggesting the startup is ready to attract public market investors.The DRHP was submitted in mid-February 2026 and lays out the details of the proposed public offer. The IPO will include both a fresh issue of equity shares and an offer-for-sale (OFS) by some of the company’s early shareholders.What the IPO Includes and How Funds Will Be UsedKlassroom’s forthcoming IPO consists of:Up to 19.89 lakh fresh equity shares for subscription.Up to 4.66 lakh shares offered by existing investors and founders under the OFS portion.The fresh issue proceeds are planned to be used for several purposes:Repaying or pre-paying debtStrengthening the company’s technology, particularly artificial intelligence (AI) and machine learning (ML) capabilitiesSupporting content developmentBoosting marketing effortsFounders and angel investors, including co-founders Alka, Dhruv, and Dhumil Javeri, will be among those selling shares through the OFS.Klassroom’s Rapid Growth in Revenue and Profit Before IPOKlassroom has shown noteworthy financial improvement in recent years:FY25 revenue jumped 120 per… Read MoreStartupTalky- Business News, Insights and Stories
