business · 2026-10-16
Study abroad startup Leverage Edu targets ₹600 Cr revenue, pre-IPO fund
Photo: via Inc42 Media
Leverage Edu, a platform helping Indian students apply to foreign universities, aims to earn ₹600 crore next year. It is also raising ₹500 crore before its stock market debut. But its profit margin is low, which may affect its valuation.
How does a study-abroad company make money?
Leverage Edu earns a matchmaking fee from a university when a student it refers enrolls there. It also sells students loans, accommodation, travel and career support; these extra services make up 25–33% of its revenue. The company added over 55,000 students in FY26, so more students means more fees and more services sold to each one.
What is a ₹500 Cr pre-IPO round for?
It is a private funding round done right before the IPO to bring a large private equity firm as an investor, giving the company more credibility with public market investors. It also gives the company a cash cushion to hit its revenue targets before listing.
What happens to the loans and travel services after the matchmaking is done?
After matching a student to a university, Leverage Edu sells them loans, accommodation, travel, and career support. This "horizontal stack" of services now makes up 25-33% of its revenue, and it is the part the company expects to grow fastest.
Who keeps paying if the IPO delays?
If the IPO is delayed, the company still earns from its core business: universities pay it a fee when students it refers enroll, and its loan, accommodation, travel, and career services bring in 25-33% of revenue. These ongoing operations keep it EBITDA profitable, so it is not dependent on the listing.
Why buy a Brazilian agency instead of growing in India?
Leverage Edu's home market is already its biggest: India brings in 50-55% of revenue, Africa 25%, South Asia (which includes countries like Pakistan and Bangladesh) and the Middle East 10% each. To grow before its IPO, it needs a new pipeline. Brazil sends nearly 90,000 students abroad yearly, up 50% since 2017, and most use agents. Mundus gives it that pipeline to cross-sell loans, accommodation and travel services.
How does 2.5% profit justify a $900 Mn value?
Investors are pricing growth, not current profit. The pitch decks position Leverage Edu alongside platform businesses like Zomato and ixigo, which trade at rich multiples. The bet is that its fintech, accommodation, and travel services will scale faster than the core matchmaking and push margins up, justifying the $900 Mn target.
Is Brazil's student market bigger than India's?
No. India is Leverage Edu's biggest market, bringing in 50-55% of revenue. Brazil sends about 90,000 students abroad yearly, up 50% since 2017, but the acquisition is about adding a fast-growing new pipeline, not replacing India.
Why does a company with thin profits still get a high valuation?
Investors price growth, not just current profit. Leverage Edu's revenue jumped 112% to ₹375 Cr in FY26, and it targets ₹600 Cr next year. Bankers compare it to Zomato and ixigo, which trade at 2-3x forward revenue despite thin or no profits. Our read: the ₹900 Mn target rests on sustaining that growth, not on today's EBITDA.
Source: inc42.com