Leverage Edu Revenue Sees Three-fold Surge To Rs 69 Cr In FY23

Leverage Edu, a Delhi-based edtech startup specialising in assisting Indian students with international college admissions, has reported significant growth in its operating scale for the fiscal year ending March 2023. However, the company also witnessed a notable increase in losses during the same period.

According to consolidated financial statements filed with the Registrar of Companies, Leverage Edu experienced a three-fold surge in operating scale, with revenue from operations skyrocketing by 228 per cent to reach Rs 69 crore in FY23 from Rs 21 crore in FY22.

Founded in 2017 by Akshay Chaturvedi, Leverage Edu offers comprehensive services including counseling, application-admission support, and financing to students seeking higher education abroad. Its clientele includes students from various countries such as India, Nigeria, and Nepal.

A significant portion of Leverage Edu's total operating revenue, constituting 90 per cent, was generated from student placement services, which witnessed a remarkable 3.26 times increase to Rs 62 crore in FY23. The remaining income was derived from other support services, with international sources contributing 84 per cent of the total revenue, while India accounted for the remaining 16 per cent.

On the expenditure front, employee benefits emerged as the largest component, representing 38 per cent of the overall expenditure, followed by advertising and promotional costs, which saw a surge of 2.6 times to Rs 55 crore in FY23.

The company's total expenditure rose by 154 per cent to Rs 173 crore in FY23, driven by increased costs in various areas including information technology, legal professionals, rent, commissions, and other overheads.

Despite the significant revenue growth, Leverage Edu's losses expanded by 70 per cent to Rs 103 crore in FY23 compared to Rs 47 crore in FY22. The company's ROCE and EBITDA margin stood at -272 per cent and -136.6 per cent, respectively, with an expenditure of Rs 2.51 to earn a rupee on a unit level.

Chaturvedi asserts, "2022 saw us make long-term investments. In 2023, we saw some brand unlock, previous year’s momentum giving us double-digit referrals, direct-to-students products firing up > leading to over two-thirds of acquisition on UK corridor being zero-CAC. When the FY24 (that we’re now closing) results play out later this year, it’ll reflect all of the above, leading into: significant revenue growth, massively trimmed losses."

Having raised approximately USD 70 million across funding rounds, Leverage Edu was last valued at around USD 140 million. The startup's largest external stakeholders include Blume Ventures, Tomorrow Capital, and DSG Consumers Partners.

Furthermore Chaturvedi adds, "Now getting into FY25, focused on newer destinations, more source-markets, well-balanced GTM, more WC-efficiency, bigger impact of Fly Finance, Fly Homes, and head-down improving our profitability."

As Leverage Edu continues to expand its offerings and target group, it faces challenges associated with high costs and market disruptions. Nevertheless, the company's strong narrative and extensive investor backing reflect its commitment to growth and innovation in the edtech sector.