Edtech unicorn LEAD Group, backed by WestBridge Capital, has launched Pinnacle, a digital curriculum solution aimed at high-fee schools, signalling its shift away from affordable institutions. The company expects Pinnacle to contribute 20-25% of its revenue in the first year, with the potential to grow to 40% within three years.
Designed for schools with annual fees ranging from Rs 50,000 to Rs 70,000, Pinnacle offers AI-powered books, coding programs, and advanced assessment tools. Schools can adopt these offerings in bundled or unbundled formats, with the flexibility to either pass the costs on to parents or absorb them.
LEAD Group, which currently supports 8,000 schools, including 5,000 acquired from Pearson’s K-12 India business last year, plans to transition many of these institutions to the Pinnacle platform.
CEO and co-founder Sumeet Mehta explained that the shift to premium schools addresses a gap in learning quality, even in higher-fee institutions.
“In many high-fee schools outside Tier-1 cities, rote learning persists despite parents paying Rs 50,000-70,000 annually,” Mehta said. He emphasised Pinnacle’s alignment with the National Curriculum Framework (NCF) 2023, a key driver of competency-based learning under the National Education Policy 2020.
LEAD Group is on track to become Ebitda-positive by FY25, with surplus profits projected for FY26. In FY24, the company achieved Rs 370 crore in revenue, a 25% rise from FY23, while narrowing losses by 65% to Rs 113 crore.
Although not actively seeking funds, LEAD remains open to acquisitions that could spur growth. “We’ll raise capital only for opportunities offering extraordinary growth beyond our organic plans,” Mehta said, hinting at potential acquisitions of smaller edtech firms with school ties.
The company has streamlined its workforce, reducing headcount from 2,350 in mid-2022 to 1,130 by October 2023, following a shift from online to offline learning. Mehta expects hiring to stabilise in the near future.
Founded in 2012, LEAD Group has raised $172 million to date, with WestBridge Capital holding a 31.4% stake, Elevar Equity 24.2%, and the founders 29.8%, according to Tracxn.