WestBridge-backed edtech unicorn LEAD Group turned a nook in FY25, reporting a constructive working EBITDA of Rs 4.03 crore earlier than ESOP bills, a reversal from its Rs 105.75 crore loss in FY24.
For the monetary yr ending March 2025, the Mumbai-based firm narrowed its web loss by 69.5%, to Rs 42.76 crore from Rs 140.22 crore a yr earlier. Its income from operations in FY25 edged up barely to Rs 351.85 crore, whereas whole income declined to Rs 367.41 crore.
EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortisation) is a measure of core working profitability, excluding non-cash expenses and financing prices.
Talking about the important thing price levers, LEAD Group Co-founder and CEO Sumeet Mehta cited three fundamental elements: improved outcomes and retention led to higher collections and lowered provisioning; AI and know-how helped decrease R&D prices whereas growing execution pace; and stronger phrase of mouth introduced down buyer acquisition prices for brand spanking new colleges.
Value self-discipline was a serious driver, with core working bills lowered by 23.6%, to Rs 363.38 crore in FY25 from Rs 475.71 crore in FY24. This enabled the corporate to show final yr’s working loss right into a constructive EBITDA (pre-ESOP). Its bills dipped to Rs 350 crore, down 24% YoY.
Trying forward, Mehta expects income to develop by 30% within the present monetary yr (FY26), with EBITDA margins projected within the excessive single digits. “We count on to realize PAT breakeven in FY27,” he added.
LEAD Group has additionally clocked an Annual Recurring Income (ARR) of Rs 415 crore for Educational 12 months (AY) 2025–26, a 30% improve over the earlier yr.
Based on Mehta, this progress is being pushed by 100% web income retention amongst associate colleges and continued sign-ups from new establishments. “Our major focus can be to proceed to drive nice pupil studying outcomes in colleges,” he stated.
Mehta additionally defined that ARR leads precise income by one monetary yr. The Rs 415 crore ARR was generated throughout FY25 and can be recognised as income in FY26.
.thumbnailWrapper{
width:6.62rem !necessary;
}
.alsoReadTitleImage{
min-width: 81px !necessary;
min-height: 81px !necessary;
}
.alsoReadMainTitleText{
font-size: 14px !necessary;
line-height: 20px !necessary;
}
.alsoReadHeadText{
font-size: 24px !necessary;
line-height: 20px !necessary;
}
}
ARR refers to predictable, contracted recurring income, usually from long-term partnerships or subscriptions. For a corporation like LEAD, ARR serves as a powerful indicator of income stability, buyer retention, and scalable progress.
LEAD’s 100% web income retention is fuelled by each excessive renewal charges and constant upselling. Based on Mehta, robust pupil outcomes and excessive utilization of the LEAD Studying System have inspired colleges to resume their partnerships. Moreover, the corporate has grown pupil enrolments inside current colleges, expanded to extra grades, and launched new choices comparable to Coding, AI, and IIT-JEE/NEET basis programmes.
In late 2024, the B2B edtech firm took a step towards personalised studying with the launch of TECHBOOKS, bodily textbooks built-in with digital options that ship a tailor-made studying expertise for every pupil.
Over 25,000 college students throughout greater than 145 LEAD associate colleges are already utilizing TECHBOOKS. “We’re seeing early outcomes on enchancment in studying fluency and engagement with augmented actuality,” Mehta remarked.
Based in 2012 by Mehta and Smita Deorah, LEAD offers a complete studying system that features software program, {hardware}, curriculum, books, college kits, and trainer coaching. Immediately, it serves over 8,500 colleges, 60,000 lecturers, and reaches almost 40 lakh college students throughout 400 cities and cities in India.
Based on Tracxn, LEAD has raised over $171 million up to now. In January 2023, it secured $20 million in debt financing, following a $4.2 million spherical from Alteria Capital in December 2022. Earlier in 2022, the corporate raised $100 million in a Collection E spherical led by WestBridge Capital and GSV Ventures, at a valuation of $1.1 billion.
Edited by Affirunisa Kankudti
