LEAD, the edtech unicorn backed by Westbridge, has significantly reduced its losses and more than doubled its operating revenue in FY 2022-23 compared to the previous fiscal year. This impressive performance is attributed to robust business growth and a decrease in cash burn. In FY23, the Mumbai-based company reported a loss of Rs 321.9 crore, marking an 18.5% reduction from the Rs 395.3 crore loss recorded in the previous financial year. Meanwhile, its operating revenue experienced a remarkable surge of 106.4%, reaching Rs 273.2 crore in FY23, up from Rs 132.4 crore in FY22, as per its recent financial statements. The startup’s total income for the fiscal year ended in March stood at Rs 295.5 crore, a substantial increase from Rs 142.9 crore in the previous fiscal year.
“In the academic year 2022-2023, we observed a significant return of students to schools. Schools have recouped a portion of the fees from parents, resulting in their improved financial standings,” Sumeet Mehta, Co-founder and CEO of LEAD, said during a recent interview, implying that the financial health of schools directly impacts LEAD’s business.
LEAD’s overall expenditure in FY23 increased by 14.7% to Rs 617.4 crore, compared to Rs 538.2 crore in FY22. The largest expense category was employee benefits, with Rs 285.4 crore allocated, marking an 11.3% rise from the Rs 256.5 crore spent in the previous fiscal year. The company underwent layoffs in January, following a previous reduction of approximately 100 employees just a few months earlier.
On the expense front, the company’s stock-in-trade expenses increased by 40.6% to reach Rs 134.8 crore in FY23, while its other expenses, including items such as travel and conveyance, professional fees, and promotional and publicity expenses, decreased by 23.2% to Rs 137.1 crore in FY23.
LEAD also reported a significant reduction in cash burn, citing a decrease of 60-70% in FY23 compared to the previous fiscal year. Established in 2012 by Mehta and Smita Deorah, LEAD offers a comprehensive integrated system encompassing software, hardware, curriculum, books, school kits, and training sessions. It serves over 9,000 schools, 50,000 teachers, and five million students, with plans to add another 2,500 schools this year.
In early 2023, LEAD entered the high-fee school segment through the strategic acquisition of the local K-12 learning business of London-based firm Pearson, which was finalized in March. In July, LEAD announced its entry into the low-fee school segment in India, with the goal of improving learning outcomes for 25 million students across 60,000 schools by 2028.
According to Tracxn, LEAD has raised over $171 million, including a $20 million debt round in January and a $4.2 million debt round from Alteria Capital in December. In 2022, the edtech company secured $100 million in a Series E funding round led by WestBridge Capital and GSV Ventures, valuing the company at $1.1 billion.
