Edtech unicorn LEAD cuts losses by 70%; revenue remains flat

Digital learning solutions provider LEAD reported flat revenue for the financial year ended March 2025. However, the company managed to cut its losses by nearly 70% due to stringent cost-control measures.

LEAD’s revenue from operations grew marginally by just 0.4% to Rs 351.8 crore in FY25 as compared to Rs 350.5 crore in FY24, its annual financial statements sourced from the Registrar of Companies (RoC) show.

LEAD provides integrated curriculum and technology solutions to schools, including books, workbooks, smart classes, teacher training, ERPs, and Math-Science kits, along with teaching aids, devices, and textbooks.

During the last fiscal year, revenue from product sales accounted for 78% of the company’s operating income at Rs 275.38 crore, while platform services contributed the remaining Rs 76.5 crore.

LEAD also earned Rs 15.6 crore from non-operating activities, bringing its total income to Rs 367.4 crore in the last fiscal year.

Like the previous fiscal (FY24), employee benefit costs reduced further in FY25, declining 20% year-on-year to Rs 139.7 crore. It remained the company’s largest expense head, accounting for 34% of total costs.

The cost of products declined 12.3% to Rs 110.8 crore in FY25, while travel and conveyance expenses were Rs 23.8 crore. The Mumbai-based company also halved its advertising spend, which stood at Rs 17.23 crore.

The company also cut spending on legal and professional fees, and transportation, contributing to a 20% year-on-year decline in overall expenses, which fell to Rs 410.7 crore in the last fiscal year.

The controlled burn on employee expenses, cost of materials and advertisement reduced its losses by 70% to Rs 43.3 crore in FY25. Notably, the company’s EBITDA (loss) improved by 100%, narrowing to just Rs 1 crore in FY25 from Rs 112.7 crore in FY24.

Its ROCE and EBITDA margin stood at -9.7% and -0.28%, respectively. On a unit level, it spent Rs 1.17 to earn a rupee in the last fiscal year. As of FY25, Lead’s current assets were recorded at Rs 370.4 crore with cash and bank balances of Rs 89.5 crore.

LEAD has raised over $180 million to date, including a $100 million round in 2022 led by WestBridge Capital that made it a unicorn. According to TheKredible, WestBridge holds the largest external stake at 27.58%, followed by Elevar Equity, while co-founders Sumeet Mehta and Smita Deorah together own 32.7%.