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LEO1 records 12% drop in scale in FY23, expenses and losses widen

  • March 18, 2024
  • By Team TheKredible
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Fintech firm LEO1 recorded a 12.6% drop in its topline to Rs 11.36 crore in FY23. The company had previously seen an overall income of Rs 13 crore in FY22.

The same year witnessed a its revenue from operations dwindling down to Rs 6.3 crore, a 50% drop from the preceding year’s Rs 12.7 crore.

Headquartered in Mumbai, LEO1 is a Google incubated and RBI governed NBFC. The platform is an education focused lending platform that allows parents to pay their children’s school fee. Users repay Financepeer in monthly installments. Some of the notable schools on the platform include Delhi Public School, GEMS Education, Birla Open Minds and Orchids, Khan Academy and Fliplearn.

Formerly known as Financepeer, the company was founded by Rohit Gajbhiye, Naveesh Reddy, and Debiprasad Baral.

With a currently valuation of Rs 534 crore, the seven-year-old company has raised over Rs 360 crore through 6 funding rounds, since inception. It last raised over Rs 280 crore in its extended Series B round led by QED Investors and Aavishkaar Capital. It round also saw participation from the likes of Capri Global Capital, Ardent Venture Partners, Ameya Chandavarkar, 9Unicorns, Sparkle Fund, Maxar.vc, and Lc Nueva Aif.

Post the infusion of the latest round, QED is the largest shareholder of the company with over 15% shares, while its ESOP are over 9%, investor Kaizen Private Equity owns close to 10%.

It previously raised Rs 49 crore led by 9Unicorns and Sparkle Fund in April 2021. It also received support from the likes of Yukti, LetsVenture, Aamara Capital, AngelBay, Black Swan Investment, One Up Financial Consultants, Prabhudas Kishordas Tobacco Products, Acp Associates, and Earlsfield Capita.

The Mumbai-based company’s expenses incurred for the last fiscal year rose up 2.2X to Rs 76.06 crore. While employee benefits looks up almost 40% of this, advertisement and promotional costs and legal charges contributed over 8% and more than 3% respectively.

In FY22, it incurred expenses over Rs 34 crore with employee benefits being the major expense of the year.

Following the expenses, LEO1’s losses spiked over three-fold to Rs 64.7 crore in FY23 as compared to FY22’s Rs 21 crore. Its EBITDA margin and ROCE currently stands at -550.38% and -55.79% respectively.

It currently is up against the likes of Leap Finance, Propelld, Kuhoo, and Eduvanz.