Ed-tech unicorn LEAD Group eyes IPO within 2-3 years: Smita Deorah

The GSV Ventures- and Westbridge Capital-backed firm became a unicorn in 2022 and is now valued at $1.14 billion. The company currently services more than 8K schools and plans to add 3-4K schools

Home-grown school ed-tech unicorn LEAD Group is eyeing a public listing within the next two to three years, co-founder and co-chief executive officer Smita Deorah told Business Standard.

 

“We are working towards achieving a certain Ebitda (earnings before interest, taxes, depreciation and amortization) margin level to give public markets confidence in the profitability of our model. We have to stay the course for another two to three years and then move towards an IPO,” she said.

 

Deorah said that given the market dynamics, the company will remain flexible. “We have spoken to a few advisers who understand the business well. When the time is right, we will enlist the right set of advisers and move forward,” she said.

 

When asked on valuation, she said: “It is a little premature to comment on it. Our focus right now is to hit a good temperature. We are on track for that. I do not see that to be a concern. It is just about now delivering it.”

 

LEAD Group has raised a total of $172 million. The GSV Ventures and Westbridge Capital-backed firm became a unicorn in 2022 and is now valued at $1.14 billion.

 

The company currently services more than 8,000 schools and plans to add 3,000 to 4,000 schools this year, Deorah said.

 

“Our focus has always been on empowering schools with curriculum and technology to improve outcomes across different spectrums of schools. In the coming academic year, we will be working with more than 10,000 schools. We will keep adding 3,000 to 4,000 schools to our family every year,” she explained.

 

In 2023, LEAD Group acquired the K-12 learning business of Pearson in India. The value of the acquisition is not public. Speaking of the company’s previous acquisition, Deorah said it has helped strategically on several grounds.

 

She explained that the acquisition of Pearson’s K-12 allowed them to add to their stack of schools.

 

“Pearson had a good product stack. In the last 18 months since acquiring Pearson’s K-12 business, the rate at which we have innovated and added product variants has been the fastest. Additionally, it also increased our channels; we now have deeper access to schools,” she said.

 

Deorah noted that acquisition is not a major focus as they are growing and would want to invest in it. However, she added that the company will keep an eye out for opportunities that align with its vision. 

 

“On the acquisition front, we continue to look for companies that are strategically aligned with our growth plan. Companies that are servicing and working with schools or have created a product stack will continue to be two areas of interest for us,” she added.