LEAD to trim burn rate, aims to become profitable in FY25

West Bridge-backed edtech unicorn LEAD School will reduce its Ebitda burn in FY24 by two-thirds and become profitable in the next financial year, the company's co-founder and CEO Sumeet Mehta told Mint in an interview.

- Priyamvada C

"We'll have very good improvement on the Ebitda because we've been on this path to profitability... and will reduce our Ebitda burn to 1/3 to a negative 100...but what is more pertinent is how schools continue with us here on, and how many new schools will we add," said Mehta on the sidelines of the second edition of the ASU+GSV & Emeritus Summit in Gurugram.

Ebitda is earnings before interest, taxes, depreciation, and amortization, and is a key metric of profitability.

The Indian edtech space has been though a turmoil, as schools and coaching centres have tried to adapt to the changing landscape of teaching between online and offline formats. The shifting sentiments and prepandemic modes of learning have pushed several companies to realign their business structure and initiate a slew of cost-cutting measures including layoffs and shuttering offices to remain afloat amid a liquidity crunch.