The education technology unicorn LEAD said on Friday, January 6, that it has reached a deal to purchase Pearson’s K–12 learning division in India from the London Stock Exchange-listed education firm.
Pearson’s K-12 learning business in India would be purchased by LEAD using a combination of new fundraising efforts and internal accruals.
The edtech firm said in a statement that LEAD would instantly increase its reach to more than 9,000 schools and significantly strengthen its product offering to serve the full range of more than 5 Lakh private schools in India as a result of the purchase.
The change occurs a few weeks after LEAD received 35 Cr INR in venture loan financing from Alteria Capital.
“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,” said Sumeet Mehta, cofounder, and CEO of LEAD.
The transaction 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.
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 kids and more than 25,000 instructors.
LEAD’s only financial advisor for the transaction was EY.
The purchase occurs amid a financing shortage in the startup ecosystem, which has forced several companies to lay off employees, especially in the edtech sector. LEAD also let go of up to 100 workers in August of last year, claiming poor performance.
A few months earlier, in January, LEAD raised $100 Mn at a valuation of $1.1 Bn and became the first unicorn. WestBridge Capital and GSV Ventures took the lead in the Series E fundraising round.
Several acquisitions have happened recently despite significant restructuring by startups in the Indian edtech sector, which resulted in the loss of approximately 7,500 full-time and contractual positions in 2022.
