BENGALURU: School edtech start-up LEAD has entered the unicorn club with the latest funding round. It raised $100 million in Series E, led by WestBridge Capital with participation from GSV Ventures. The start-up’s valuation now stands at $1.1 billion.
The company plans to use the proceeds to achieve its vision of providing quality affordable education to over 25 million students with an annual revenue run-rate of $1 billion. LEAD said its immediate focus would be towards product and curriculum innovation, growth in its footprint and hiring top talent across functions.
The education market in India is expected to touch $225 billion by FY25, according to India Brand Equity Foundation. Also, from April 2000 to June 2021, FDI equity inflows stood at $6,154.87 million. Edtech start-ups have been witnessing record growth amid the pandemic. A recent report says there are 9,043 edtech start-ups in India and big players include Byju’s, Eruditus, Teachmint, Cuemath and Infinity Learn, among others.
Founded by Sumeet Yashpal Mehta and Smita Deorah in 2012, LEAD has been transforming core schooling in India with its full-stack School EdTech solution. It combines technology, curriculum, and pedagogy into an integrated system of teaching and learning, so as to improve student learning outcomes and teacher performance in schools.
Over the last four years, the start-up has seen rapid adoption and it will enter academic year 2022-23 with 5,000 schools across 500 cities in India with an annual revenue run-rate of $80 million. LEAD co-founders Sumeet Yashpal Mehta and Smita Deorah said, “A child spends 6 hours in school and only 1 hour in tuition. Transforming schools, when done right, has massive potential to alter our country’s future.”
Valuation doubles in just 9 months
The start-up’s valuation has doubled in the last 9 months on the back of strong growth in its operating and financial metrics. The current round is its fifth round of institutional funding since 2017