Leverage Edu, a Delhi-based study abroad platform, has demonstrated remarkable growth in revenue alongside a widening of losses in the fiscal year 2022-23, according to its recent financial statements. While the company witnessed a substantial increase in revenue from operations, its losses expanded due to higher expenses, shedding light on the intricacies of its financial performance and operational strategies.
Rapid Revenue Growth:
In the fiscal year 2022-23, Leverage Edu achieved a noteworthy milestone by recording a staggering revenue of Rs 68.9 crore, marking a remarkable surge of 228% from the Rs 21 crore earned in the previous fiscal year. This impressive growth underscores the platform’s increasing popularity and effectiveness in facilitating study abroad opportunities for students from emerging countries like India, Nigeria, and Nepal.
Widening Losses and Increased Expenses:
Despite the remarkable revenue growth, Leverage Edu experienced a significant widening of losses, which soared by 118.3% to Rs 102.8 crore in FY23 from Rs 47.1 crore in FY22. This spike in losses was primarily attributed to a substantial rise in expenses, which escalated by 153.3% to Rs 173.5 crore in FY23 compared to Rs 68.5 crore in the previous fiscal year.
Expense Breakdown:
The primary contributor to Leverage Edu’s expenses was employee benefit expenses, constituting 38% of its total expenses. This category, including salaries, wages, contributions to provident and other funds, gratuity, and staff welfare expenses, surged by 110.6% to Rs 65.8 crore in FY23 from Rs 31.3 crore in FY22.
Moreover, the company’s expenditure on advertising and promotional costs reached Rs 55.5 crore in FY23, marking a substantial surge of 162.4% from Rs 21.2 crore in the previous year. Additionally, legal professional charges rose to Rs 11.9 crore in FY23 from Rs 2.8 crore in FY22.
Diverse Revenue Streams:
In FY23, Leverage Edu’s total income, including interest income from current investments and liabilities written off, rose to Rs 70.8 crore, compared to Rs 21.4 crore in the preceding fiscal year. The platform generated Rs 61.9 crore from student placement services and Rs 4.7 crore from Fly, its financial arm. Notably, Rs 58 crore of its total revenue from operations came from international sources, underlining its global reach and impact.
Strategic Investments and Funding:
Last July, Leverage Edu secured $40 million in a Series C funding round led by Educational Testing Service, alongside existing investors. The startup has garnered support from prominent investors such as Blume Ventures, Kaizenvest PE, DSP Mutual Fund, Tomorrow Capital, DSG Consumer Partners, and Trifecta Capital, highlighting investor confidence in its growth trajectory and market potential.
Founding Vision and Industry Impact:
Founded in April 2017 by Akshay Chaturvedi, Leverage Edu is committed to assisting students from emerging countries in accessing higher education opportunities abroad. The platform offers a comprehensive suite of services, including counselling, application support, college admissions assistance, education loans, international money transfer, and student accommodation, empowering students to pursue their academic aspirations globally.
In conclusion, Leverage Edu’s financial journey reflects the dynamic nature of the study abroad market and the challenges associated with scaling operations while maintaining profitability. Despite facing widening losses, the platform’s robust revenue growth and strategic investments underscore its resilience and potential to reshape the landscape of study abroad services, offering students unparalleled opportunities for academic and personal growth on a global scale.