The education technology industry is often lumped as a single category —online learning — but edtech unicorn Lead Group CEO and co-founder Sumeet Mehta says it amounts to oversimplifying a sector which is layered and has offers a lot more.
"Painting all edtech companies with the same brush is misleading," he tells Moneycontrol in an exclusive interview, highlighting the misconception that equates the sector with just online learning and coaching, overlooking school-focused solutions.
"The concept of edtech mostly revolves around online learning or coaching, which is what most people think of because that was what was making all the headlines. But school edtech is where real transformation is happening, especially with the National Curriculum Framework (NCF) 2023 pushing for multimodal, personalised learning.”
The statement comes at a time when edtech firms, especially those focused on online classes, struggle to maintain their growth post-pandemic.
"We often forget the numbers: 270 million students go to school in India, while only around 4 million students are engaged in coaching for exams like JEE and IAS. Yet, all the focus has been on online coaching, and it sometimes boggles me why school edtech is overlooked when the opportunity is far larger," he said.
Edtech’s two worlds
Mehta clarifies the distinction between two segments within edtech: the B2C model focused on online learning and coaching, and the B2B/B2B2C model, where Lead operates.
"We are deeply involved in schools, helping them transition from traditional teaching methods to tech-enabled, multimodal approaches," he says. This shift will be the long-term growth driver for the edtech industry, Mehta says.
The Westbridge-backed firm has partnered with over 8,000 schools to offer them integrated learning systems.
"Schools need support to transition to NCF 2023, which emphasises competency-based learning. They won’t be able to do it alone, and that’s where we come in," he says.
Acknowledging the challenges being faced by the edetch sector, which is seeking consolidation, Mehta, however, sees significant growth potential in school edtech, test preparation and upskilling sectors.
Lead Group, which acquired Pearson India’s K-12 learning business in 2023, saw 25 percent revenue growth in FY24, reaching Rs 370 crore. The company expects to be EBITDA break-even by the end of the current financial year.
"Our positive unit economics with scale ensure that contribution margins flow to EBITDA," Mehta says, crediting Lead's innovations like the Techbook for this momentum.
EBITDA is short for earnings before interest, taxes, depreciation and amortisation.
The Techbook advantage
Techbook, a recent Lead product, transforms regular textbooks with scan-and-learn technology.
"Unlike standalone digital tools, Techbook allows both teachers and students to seamlessly incorporate augmented reality in the classroom and at home," Mehta says.
Priced between Rs 800 and Rs 900, the Techbook offers an interactive learning experience.
Each lesson comes with a code on the side, which can be scanned by a device. It then takes the reader to the Lead's app where the concept is blended with different technologies and tools making the learning interactive.
For instance, an augmented reality instructor (ARI) visualises complex concepts in 3D, real-time feedback on reading fluency is provided by a personalised assistant.
Although Lead’s solutions are mostly adopted by private schools, Mehta is optimistic about expanding into government institutions. He says government schools, which rely heavily on NCERT textbooks, are yet to transition to tech-driven education models.
"We are exploring discussions with the education department to integrate technology into government schools," he says.
NCF 2023: A game changer?
"The biggest game changer for school edtech is NCF 2023," Mehta says. The framework shifts from rote learning to competency-based, multimodal, and personalised education.
"NCF asks schools to test for competency, which can’t be done with traditional methods. Teachers need to incorporate audio-visual tools, interactive activities, and personalised instruction," he says.
These changes are impossible without technology. "One teacher managing 40 students can’t personalise learning effectively. But with technology, they can assign different reading levels, practices, and offer customised learning paths," he says.
At present, more than 35 lakh students and 50,000 teachers are using Lead's solutions.
The firm raised $100 million in January 2022, which put it into the elite club of startup unicorns, companies valued at $1 billion or more. This was followed up with a debt of $25 million in several tranches.
The future of B2B edtech
Mehta is confident that school edtech, alongside test prep and upskilling sectors, will continue to grow. He says schools will need help in making the shift to competency-based learning models and Lead is perfectly positioned to do that.
“B2B edtech is where the future lies," Mehta says. "Institutions are realising that they need technology to manage classrooms more effectively and ensure every student’s learning needs are met."
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