The acquisition will help LEAD provide integrated edtech solutions to over 60,000 schools across India by 2026, the edtech startup said
LEAD announced its plan to acquire Pearson’s K-12 learning business in India in January and said it would fund the deal through a combination of new fundraise and internal accruals
In January this year, the edtech unicorn laid off around 60 employees in the second round of job cuts at the company within five months
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Edtech unicorn LEAD on Wednesday (March 15) said it has completed the acquisition of London Stock Exchange-listed education group Pearson’s K-12 learning business in India, which has helped the startup expand its reach to 5 Mn students across the country.
The acquisition of the local K-12 learning business of Pearson India will help LEAD provide integrated edtech solutions to over 60,000 schools across India by 2026, the startup said in a statement.
LEAD announced its plan to acquire Pearson India’s K-12 learning business for an undisclosed amount in January this year. The startup then said that it would fund the deal through a combination of new fundraising and internal accruals.
Just a few weeks before that announcement, LEAD raised INR 35 Cr from venture debt firm Alteria Capital. In January 2023, LEAD raised a total of about INR 160 Cr via a mix of long-term capital from Alteria Capital and Stride Ventures, and working capital financing from banks such as Standard Chartered Bank, HDFC Bank, and ICICI Bank.
However, the deal also came on the heels of the startup laying off its employees.
Within a few days of the deal announcement, sources exclusively told Inc42 that LEAD laid off around 60 employees from its tech and product teams. It was the second round of layoffs in the edtech major within five months. In August 2022, the startup fired around 100 employees.
Founded in 2012 by Sumeet Mehta and Smita Deorah, LEAD helps schools combine technology, curriculum, and pedagogy in an integrated teaching and learning system. As per the startup, its integrated system is available to schools in 400+ towns and cities across India and now reaches over 5 Mn students and more than 50,000 teachers.
Commenting on the acquisition, Mehta, cofounder and CEO of LEAD, said, “Different school segments in India have very different learning needs. With this acquisition, LEAD aims to serve as a single point solution provider for all the learning needs of both affordable private schools in India’s small towns, as well as private high-fee schools in its metros and large cities.”
While the funding winter, which engulfed the Indian startup ecosystem last year, has affected startups across sectors, the edtech segment has been hit hardest. As per Inc42’s layoff tracker, edtech startups have fired around 8,000 employees so far since 2022.
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