Edtech unicorn Lead Group, which provides digital learning solutions to schools, reported flat operational revenue of Rs 351 crore for 2024-25 but managed to reduce its losses sharply by 69%, driven by stronger school retention, reduced customer acquisition costs and artificial intelligence (AI)-led operational efficiencies.
The Mumbai-based firm’s net loss fell to Rs 43 crore from Rs 140 in the previous year. Its expenses reduced 24% year-on-year to Rs 350 crore.
Lead Group’s cofounder and chief executive Sumeet Mehta told ET that the revenue remained flat because the company had lost a number of schools two years ago and new additions at the time weren’t enough to offset those losses.
“Post-Covid, we had a couple of years where we were struggling because many schools were struggling, but as implementation and usage of our system improved and learning outcomes got better, retention naturally came back,” he said.
The company has recorded an annual recurring revenue (ARR) of Rs 415 crore for the 2025-26 academic year, marking a 30% increase over the previous year.
“In our core learning system business, we’ve grown 37%, driven by net revenue retention of over 100% and the addition of new schools,” said Mehta.
The WestBridge Capital-backed company became earnings before interest, taxes, depreciation and amortisation (Ebitda) profitable for the first time in 2024-25. It is now targeting a 30% growth in its revenue in the current fiscal, while targeting a Rs 32 crore Ebitda.
Founded in 2012 by Mehta and Smita Deorah, the edtech company provides tech-enabled solutions to schools with a focus on digital learning through an online or hybrid classroom model (both physical and digital).
“As more schools adopt learning systems and begin to see improved outcomes, word-of-mouth will spread, and 15-20 years from now, I believe 40-50% of private schools will be using such systems,” Mehta said.
According to him, India has about one million government schools and roughly half a million private schools.
Lead Group currently works with more than 8,500 schools in India. Its Integrated School Edtech System is available across 400 towns and cities, reaching more than four million students and 60,000 teachers.
Around 60% of the company’s business comes from schools in tier-3 and tier-4 towns, while about 20% comes from tier-1 cities and the remaining 20% from metro markets.
“Our goal is to reach 10,000 schools by the end of this year. In terms of net revenue retention, we want to improve on 100% and move into the top tier of global SaaS (software-as-a-service) businesses, which operate at 110% net revenue retention,” Mehta said, adding that the firm is working on several AI-driven innovations to improve learning outcomes.
Lead Group raised $100 million in January 2022 which propelled it into the elite club of startup unicorns, or privately held companies with a valuation of at least $1 billion. It has raised a total of about $165 million to date.
The company has acquired two firms so far – student assessment and practice platform QuizNext and K-12 India business of British educational services company Pearson.
“There aren’t many good acquisition targets in the market, so we want to be strategic about it. We're always open and are looking at a few, but we want to ensure that it makes strategic sense and is synergistic,” said Mehta.
The Mumbai-based firm’s net loss fell to Rs 43 crore from Rs 140 in the previous year. Its expenses reduced 24% year-on-year to Rs 350 crore.
Lead Group’s cofounder and chief executive Sumeet Mehta told ET that the revenue remained flat because the company had lost a number of schools two years ago and new additions at the time weren’t enough to offset those losses.
“Post-Covid, we had a couple of years where we were struggling because many schools were struggling, but as implementation and usage of our system improved and learning outcomes got better, retention naturally came back,” he said.
The company has recorded an annual recurring revenue (ARR) of Rs 415 crore for the 2025-26 academic year, marking a 30% increase over the previous year.
“In our core learning system business, we’ve grown 37%, driven by net revenue retention of over 100% and the addition of new schools,” said Mehta.
The WestBridge Capital-backed company became earnings before interest, taxes, depreciation and amortisation (Ebitda) profitable for the first time in 2024-25. It is now targeting a 30% growth in its revenue in the current fiscal, while targeting a Rs 32 crore Ebitda.
Founded in 2012 by Mehta and Smita Deorah, the edtech company provides tech-enabled solutions to schools with a focus on digital learning through an online or hybrid classroom model (both physical and digital).
“As more schools adopt learning systems and begin to see improved outcomes, word-of-mouth will spread, and 15-20 years from now, I believe 40-50% of private schools will be using such systems,” Mehta said.
According to him, India has about one million government schools and roughly half a million private schools.
Lead Group currently works with more than 8,500 schools in India. Its Integrated School Edtech System is available across 400 towns and cities, reaching more than four million students and 60,000 teachers.
Around 60% of the company’s business comes from schools in tier-3 and tier-4 towns, while about 20% comes from tier-1 cities and the remaining 20% from metro markets.
“Our goal is to reach 10,000 schools by the end of this year. In terms of net revenue retention, we want to improve on 100% and move into the top tier of global SaaS (software-as-a-service) businesses, which operate at 110% net revenue retention,” Mehta said, adding that the firm is working on several AI-driven innovations to improve learning outcomes.
Lead Group raised $100 million in January 2022 which propelled it into the elite club of startup unicorns, or privately held companies with a valuation of at least $1 billion. It has raised a total of about $165 million to date.
The company has acquired two firms so far – student assessment and practice platform QuizNext and K-12 India business of British educational services company Pearson.
“There aren’t many good acquisition targets in the market, so we want to be strategic about it. We're always open and are looking at a few, but we want to ensure that it makes strategic sense and is synergistic,” said Mehta.
