Leverage Edu Reports Threefold Revenue Growth in FY23 Despite Widening Losses
- ByStartupStory | February 10, 2024
Study abroad platform Leverage Edu has recorded a significant increase in revenue from operations in the fiscal year 2022-23, but also experienced a widening of losses due to higher expenses. The Delhi-based company reported a revenue of Rs 68.9 crore in FY23, marking a 228% surge from the Rs 21 crore earned in FY22, according to its recent financial statements.
However, its losses widened by 118.3% to Rs 102.8 crore in FY23 from Rs 47.1 crore in the previous financial year. This increase in losses was attributed to a substantial rise in expenses, which grew by 153.3% to Rs 173.5 crore in FY23 compared to Rs 68.5 crore in FY22.
The primary contributor to Leverage Edu’s expenses was employee benefit expenses, including salaries, wages, contributions to provident and other funds, gratuity, and staff welfare expenses, accounting for 38% of its total expenses. This specific expense increased by 110.6% to Rs 65.8 crore in FY23 from Rs 31.3 crore in FY22.
In FY23, the company’s expenditure on advertising and promotional costs reached Rs 55.5 crore, marking the second-largest expense, a 162.4% surge from Rs 21.2 crore in the previous year. Additionally, legal professional charges rose to Rs 11.9 crore in FY23 from Rs 2.8 crore in FY22.
The startup’s total income, including interest income from current investments and liabilities written off, rose to Rs 70.8 crore in FY23, compared to Rs 21.4 crore in the preceding fiscal year. Leverage Edu generated Rs 61.9 crore from student placement services and Rs 4.7 crore from Fly, its financial arm. Of its total revenue from operations, Rs 58 crore came from international sources, with the remainder generated domestically.
Last July, Leverage Edu raised $40 million in a Series C funding round led by Educational Testing Service, a Princeton-based language testing conglomerate, and existing investors. The startup is backed by investors such as Blume Ventures, Kaizenvest PE, DSP Mutual Fund, Tomorrow Capital, DSG Consumer Partners, and Trifecta Capital.
Founded in April 2017 by Akshay Chaturvedi, Leverage Edu assists students from emerging countries, including India, Nigeria, and Nepal, in accessing higher education opportunities abroad. The platform offers a range of services, including counselling, application support, college admissions assistance, education loans, international money transfer, and student accommodation. Tracxn ranks Leverage Edu as a top competitor among 74 rivals in the industry, including Leap Scholar, which raised $75 million in a Series D funding round in June 2022.
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