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Leverage Edu's Revenue Skyrockets 3.2 Times to Rs 69 Cr in FY23 Amid Rising Costs

Leverage Edu, the Delhi-based startup aiding Indian students in securing spots at global colleges, has witnessed an impressive surge in its operational scale, with revenue soaring over threefold in the fiscal year ending March 2023. However, alongside this remarkable growth, the company also experienced a substantial increase in losses.

According to its consolidated financial statements filed with the Registrar of Companies, Leverage Edu saw its revenue from operations skyrocket by 228% to Rs 69 crore in FY23 from Rs 21 crore in FY22.

Established in 2017 by Akshay Chaturvedi, Leverage Edu offers comprehensive services encompassing counseling, application-admission support, and financing for students pursuing international education. The company extends its assistance to students from various countries including India, Nigeria, and Nepal.

A significant portion of Leverage Edu's operating revenue, accounting for 90%, was generated from student placement services, which surged 3.26 times to Rs 62 crore in FY23. The remaining income was derived from other support services. Notably, a substantial 84% of the total revenue was sourced internationally, with India contributing 16% to the company's income.

On the expenditure front, employee benefits constituted the largest chunk, representing 38% of the overall expenditure. This cost witnessed a 2.1 times increase to Rs 66 crore in FY23, while advertising and promotional costs surged 2.6 times to Rs 55 crore during the same period.

Various expenses including information technology, legal professionals, rent, commissions, and overheads contributed to a total expenditure rise of 154% to Rs 173 crore in FY23 from Rs 68 crore in FY22.

Despite the revenue growth, Leverage Edu's losses widened by 70% to Rs 103 crore in FY23 from Rs 47 crore in FY22. The company reported an ROCE of -272% and an EBITDA margin of -136.6%, with a unit-level expenditure of Rs 2.51 to earn a rupee.

Having raised approximately $70 million across funding rounds and last valued at around $140 million, Leverage Edu boasts a diverse investor base. Notably, Blume Ventures holds the largest external stake at 16.9%, followed by Tomorrow Capital and DSG Consumers Partners with 14.82% and 12.52% respectively.

As Leverage Edu continues to expand its offerings, including test prep and funding arrangements, it faces challenges associated with high operational costs. Disruptions in key markets such as Canada and a sluggish job market in lucrative western markets could pose risks to its growth trajectory.

Despite these challenges, Chaturvedi's adept narrative-building skills, backed by support from over 50 investors, provide avenues for tie-ups and expansions. However, the company must focus on sustainable growth, potentially reducing marketing costs while maintaining its brand strength in a competitive sector.


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