LeadSquared, a Bengaluru-based SaaS unicorn, is setting its sights on profitability by FY26, despite past challenges stemming from the downturn in the edtech sector. The company also aims to achieve IPO-readiness by the next fiscal year, marking a critical milestone in its growth journey.
In FY24, LeadSquared reported revenue of Rs 279.3 crore, reflecting a modest 9% growth over FY23. However, its net losses widened slightly to Rs 162.2 crore from Rs 161 crore the previous year. Co-founder and COO Prashant Singh attributed past setbacks to heavy reliance on edtech clients and investment in the US market.
“Diversifying our customer base across industries has been key to de-risking the business,” Singh said. The firm now caters to over 2,000 clients, including Cred, Manipal Hospitals, Bajaj Auto, and UpGrad, spanning industries like BFSI, healthcare, manufacturing, and real estate.
Singh acknowledged that LeadSquared’s focus shifted towards the US market post-Series C funding in June 2022, when the company raised $153 million at a $1 billion valuation. “While our frugal ethos remained intact, investments were necessary to penetrate new markets and develop new products,” he explained.
The firm plans to optimise expenditures, particularly cloud costs, which constitute a significant portion of its outlays. Simultaneously, it aims to bolster revenues by investing in core products like lead management and help desk solutions, alongside integrating AI capabilities.
Geographically, LeadSquared will continue prioritising the US and Indian markets, with education and healthcare as focus sectors. It also serves South Africa, Indonesia, and the Middle East. “These markets offer significant growth potential, especially for SaaS businesses,” Singh noted.
Looking ahead, LeadSquared remains open to strategic acquisitions. In 2023, it acqui-hired FloStack to enhance its offerings. “We’re always exploring interesting IP assets that complement our portfolio,” Singh added.
While the startup hasn’t set a firm IPO date, Singh said that the company would be operationally prepared by FY26, with the final decision contingent on market conditions and stakeholder interests.