EdTech Unicorn LEAD raises $4.2 million in a debt round led by venture debt firm Alteria Capital for its financing needs before its next funding round
LEAD’s (registered as Leadership Boulevard Private Limited ) board has approved a special resolution to issue 3,500 Series A non-convertible debentures (NCD) to Alteria Capital at an issue price of Rs 1,00,000 per debenture to raise $4.2 million.
Date of Announcement: 14th December 2022.
Funding: $4.2 million (~INR 35 crs)
Round of Funding: Non- Convertibe Debentures (NCD)
Investors Participated: Alteria Capital
Total funds raised: $170.2 mn
Valuation: $1.1 billion (previously LEAD School, has raised Series E funding of $100 million at a valuation of $1.1 billion)
ABOUT THE STARTUP: Founded in 2012 by Sumeet Yashpal Mehta and Smita Deora, LEAD is transforming core schooling in India with its innovative full-stack school tech solution. It has been making global-standard education accessible and affordable to students, especially in tier 2 cities. Curriculum in a LEAD-powered school is benchmarked with the best in the world, including schools in Singapore, Canada, and the US. LEAD's integrated school system provides software, hardware curriculum, books, a school kit, and training sessions.
After getting the unicorn status, it announced an employee stock ownership plan liquidation plan of nearly $3 million for its employees, however, company also laid off 80-90 employees in August to cut costs.
Board has approved a special resolution to issue 3,500 Series A non-convertible debentures (NCD) to Alteria Capital at an issue price of Rs 1,00,000 per debenture to raise $4.2 million, according to an Entrackr report.
FOUNDER VIEW: LEAD Co-founders Sumeet Yashpal Mehta and Smita Deborah said, “A child spends six hours in school and only one hour in tuition. Transforming schools, when done right, has massive potential to alter our country’s future. LEAD, with its integrated school system, has broken new ground in this direction. We believe that in tech, Saraswati precedes Lakshmi. Further, focus is on learning outcomes and the life success of our students which has resulted in not only strong adoption and retention by schools but also interest from investors who value returns with real impact. We’re extremely thankful to our team of LEADers for staying true to our mission and helping take LEAD to all corners of the country.”
INVESTOR VIEW: “We are extremely proud of LEAD’s success as the largest school edtech provider in India and its growth last year, despite COVID disruptions, underlines its consumer-first approach and deep focus on learning outcomes. We are excited to double down our investment in LEAD, to support its mission of transforming the education sector in India and touching the lives of millions of students.”
PURPOSE OF FUNDING:
- Achieve its vision of providing quality affordable education to 25 million+ students
- Reach an ARR of $1 billion
- Immediate focus will be on product and curriculum innovation, growth in its footprint, and hiring top talent across functions.
In Nov22, debt financing declined 67.7% MoM to $115.8mn as compared to $358.3mn in Oct22.
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