Edtech unicorn LEAD said on Friday, January 6, that it has entered into an agreement to purchase Pearson’s K–12 learning business in India from the education company, which is listed on the London Stock Exchange.
LEAD will use a combination of new fundraising efforts and internal accruals to pay for the purchase of Pearson’s K–12 learning business in India. The edtech firm said in a statement that with the acquisition, LEAD would immediately increase its reach to more than 9,000 schools and significantly strengthen its product portfolio to serve the full range of more than 5 Lakh private schools in India.
Sumeet Mehta and Smita Deorah founded LEAD in 2012 to give schools the ability to integrate technology, curriculum, and pedagogy into one cohesive teaching and learning system. According to LEAD, their integrated system is accessible to schools in more than 400 Indian towns and cities, serving more than 1.2 million students and more than 25,000 teachers.
The change occurs a few weeks after venture debt company Alteria Capital helped LEAD raise INR 35 Cr. The acquisition is anticipated to close by Q1 2023, subject to the usual closing conditions, according to LEAD.
Pearson India provides learning solutions via books and digital platforms for private, English-medium CBSE and ICSE schools, ensuring learning continuity at home. Additionally, it provides teaching aids.
Sumeet Mehta, Co-Founder and CEO, LEAD said, “School edtech is poised for sustained growth post-Covid and with the acquisition of the local K-12 learning business of Pearson India, we will be able to reach more schools and students in the service of our mission to provide excellent education to every child.”
The acquisition occurs in spite of the startup ecosystem’s financial crisis, which has caused numerous employment losses across all firms, particularly in the edtech sector. LEAD also terminated about 100 workers in August of last year, citing performance-related difficulties. Just a few months earlier, in January, LEAD raised $100 Mn at a $1.1 Bn value to join the unicorn club. Leading the Series E investment round were GSV Ventures and WestBridge Capital.
Despite significant reorganisation by startups in the Indian edtech sector, which resulted in the loss of over 7,500 full-time and contracted positions in 2022, a number of acquisitions have recently happened.
