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Westbridge-backed edtech unicorn LEAD narrowed its losses and more than doubled its operating revenue in FY 2022-23 compared to the previous fiscal year, driven by robust business growth and a reduction in cash burn.

The Mumbai-based company reported an FY23 loss of Rs 321.9 crore, marking a fall of 18.5% from the Rs 395.3 crore loss recorded in the previous financial year. Meanwhile, its operating revenue saw a 106.4% surge, touching Rs 273.2 crore in FY23 compared to Rs 132.4 crore in FY22, as per its recent financial statements.

The startup’s total income stood at Rs 295.5 crore in the financial year ended this March—up from Rs 142.9 crore in the previous fiscal year.

“In the academic year 2022-2023, we observed a significant return of students to schools. Schools have recouped a portion of the fees from parents, resulting in their improved financial standings,” Sumeet Mehta, Co-founder and CEO of LEAD, said during a recent interview, implying that the financial health of schools directly impacts LEAD’s business.   

The edtech firm’s overall expenditure increased by 14.7% to Rs 617.4 crore in FY23, compared to Rs 538.2 crore in FY22. It allocated Rs 285.4 crore to employee benefits—an 11.3% rise from the Rs 256.5 crore spent in the previous fiscal year, making it the largest expense category.

In January, LEAD made another round of layoffs, following a workforce reduction of approximately 100 employees just a few months earlier.

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More on the expense front, the company’s stock-in-trade expenses surged by 40.6% to reach Rs 134.8 crore in FY23, whereas its other expenses, including items such as travel and conveyance, professional fees, and promotional and publicity expenses, declined by 23.2% to Rs 137.1 crore in FY23.

The pureplay B2B edtech firm said that it has reduced its cash burn by 60-70% in FY23 versus the previous fiscal.

Founded in 2012 by Mehta and Smita Deorah, LEAD offers a comprehensive integrated system encompassing software, hardware, curriculum, books, school kits, and training sessions, serving over 9,000 schools, 50,000 teachers, and five million students. The edtech firm plans to add another 2,500 schools this year. 

In early 2023, LEAD made its foray into the high-fee school segment by strategically acquiring the local K-12 learning business of London-headquartered firm Pearson. This acquisition was completed in March. In July, LEAD announced its entry into the low-fee school segment in India. It aims to improve learning outcomes across 25 million students in 60,000 schools by 2028.

LEAD has raised over $171 million, according to Tracxn. It raised $20 million in debt in January, following a $4.2-million debt round from Alteria Capital in December. Earlier in 2022, the edtech company raised $100 million in a Series E funding round led by WestBridge Capital and GSV Ventures at a valuation of $1.1 billion.