Blog

Study abroad platform Leverage Edu has witnessed over threefold increase in revenue from operations in FY23, although its losses widened due to a significant rise in expenses.

The Delhi-based company reported Rs 68.9 crore in revenue from operations in FY23, a 228% increase from the Rs 21 crore earned in FY22, as per its recent financial statements.

Its loss widened 118.3% to Rs 102.8 crore in FY23 from Rs 47.1 crore incurred in the previous financial year. This surge in losses was driven by a substantial 153.3% rise in expenses to Rs 173.5 crore in FY23, as opposed to Rs 68.5 crore reported in FY22.

The dominant contributor to Leverage Edu’s costs was employee benefit expenses, including salaries, wages, salary to directors, contributions to provident and other funds, gratuity as well as staff welfare expenses—constituting 38% of its total expenses. This specific expense grew 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. Moreover, legal professional charges rose to Rs 11.9 crore in FY23 from Rs 2.8 crore in FY22.

@media (max-width: 769px)
.thumbnailWrapper
width:6.62rem !important;

.alsoReadTitleImage
min-width: 81px !important;
min-height: 81px !important;

.alsoReadMainTitleText
font-size: 14px !important;
line-height: 20px !important;

.alsoReadHeadText
font-size: 24px !important;
line-height: 20px !important;

Also Read

Eruditus narrows losses; revenue surges 75% YoY in FY23

The startup’s total income, comprising interest income from current investments and liabilities written off, surged to Rs 70.8 crore in FY23, compared with Rs 21.4 crore earned in the preceding fiscal year.

The Akshay Chaturvedi-led firm 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 originated from international sources, with the remainder generated domestically.

Last July, Leverage Edu secured $40 million in a Series C funding round led by Educational Testing Service, a Princeton-based language testing conglomerate, and existing investors. It 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 Chaturvedi, Leverage Edu assists students from emerging countries, including India, Nigeria, and Nepal, in accessing higher education opportunities abroad.

The platform provides 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.