India’s ed-tech unicorn, LEAD Group, is preparing to seek private equity funding after hitting a major profitability milestone, with an optimistic outlook for positive EBITDA by the end of the financial year (FY25) in March. This comes as educational spending in India sees a steady rise, according to co-founder and CEO, Sumeet Mehta.
“We’re continuously enhancing our profitability, aiming for a 25% EBITDA margin as we stabilize,” Mehta told Business Standard in an interview. Once the company establishes a consistent profit record, it plans to approach investors for additional funding.
This year marks a turning point for LEAD Group, expected to be its first profitable year after a $100 million investment from WestBridge Capital and GSV Ventures in 2022, which valued the firm at over $1.1 billion.
Reflecting on the challenges faced by the sector following the decline of ed-tech giant Byju’s, whose valuation fell from $22 billion to zero within three years, Mehta noted that the pandemic had briefly shifted investor focus towards online education and B2C models. “The pandemic saw a short-lived trend for B2C ed-tech,” he said. “Now, some investors are hesitant to return to ed-tech until past losses are less of a concern. However, we’re engaging with investors who recognize the unique potential of school-focused ed-tech.”
Founded in 2012 by Mehta and Smita Deorah, LEAD Group aims to improve school education in India by combining research-backed curricula with technology, aligned with the National Education Policy. Mehta emphasized a focus on profitable growth over valuation, targeting investors who understand the long-term value in school ed-tech and upskilling sectors.
India’s private school enrollment currently stands at around 120 million students and is projected to grow to 200 million by 2030, with an anticipated rise in educational expenditure from approximately Rs2.15 trillion to Rs5 trillion over the same period. LEAD Group’s solution, designed to replace traditional textbooks and smart class expenses, aims to offer schools a cost-effective, integrated system that improves teacher efficiency and student learning outcomes.
“Our integrated approach consolidates essential resources for educators, driving better learning results while containing costs for parents,” Mehta said. By prioritizing educational effectiveness over expenditure, LEAD Group seeks to address a gap where current spending is not fully translating into employable skills for students.