LEAD the Edtech Unicorn, Acquires Pearson’s K-12 Learning Business in India

• ByStartupStory     |    March 16, 2023

LEAD, a Mumbai-based edtech company, announced the successful acquisition of Pearson’s K-12 learning business in India. This strategic investment has catapulted the company’s reach to more than 9,000 schools and an excess of five million students across the nation, solidifying its position as a leading player in the education technology sector.

According to Sumeet Mehta, Co-founder and CEO of LEAD, the diverse range of schools in India necessitates varied learning solutions. By acquiring Pearson’s K-12 learning business, LEAD seeks to address the learning requirements of both affordable private schools in smaller towns and high-fee private schools in larger cities, positioning itself as a comprehensive solution provider for all educational needs.

LEAD’s latest acquisition is expected to play a significant role in achieving the company’s ambitious goal of expanding its reach to 60,000 schools in India by 2026, as per a company statement. The edtech unicorn had previously entered into an agreement with Pearson to acquire the K-12 learning business in India earlier this year, with funding for the acquisition coming from a combination of new fundraising efforts and internal accruals, as per the company’s previous announcement. Additional details about the funding arrangements, however, were not disclosed.

 

LEAD had secured a debt funding round of approximately $20 million (Rs 160 crore) from various venture debt firms and banks in the same month. The funding came from a combination of long-term capital provided by Stride Ventures and Alteria Capital, as well as working capital financing from HDFC Bank, ICICI Bank, and Standard Chartered Bank, among others. The edtech company had earlier revealed that it intended to utilize the funds to support both its organic and inorganic growth plans.

LEAD, an edtech company that recently entered into an acquisition agreement with Pearson India, has announced its second round of workforce reduction after laying off approximately 100 employees a few months ago. The company had previously achieved unicorn status in January of the previous year and announced a $3 million employee stock ownership liquidation plan. However, in August, the firm laid off around 100 employees in a cost-cutting move, which was consistent with other companies in the edtech sector.

In the fiscal year 2021-22, LEAD’s standalone loss significantly increased to Rs 397.1 crore, which was more than three times the amount in the previous year (Rs 126.1 crore). Despite this, the company’s revenue more than doubled to Rs 133.2 crore in FY22 from Rs 57.1 crore in FY21.

LEAD, established by Sumeet Mehta and Smita Deorah in 2012, offers a comprehensive school system that includes hardware, software, books, curriculum, school kit, and training sessions.

Follow Startup Story