Leverage.biz Conducts Second Employee Stock Buyback

Leverage.biz, the parent company of Leverage Edu, Fly.Finance, and Fly Homes, announced the successful completion of its second employee stock ownership plan (ESOP) buyback program. Over 50 employees across various departments within the organization benefited from this initiative. While the exact amount of the buyback wasn’t disclosed, this move marks a significant milestone for Leverage.biz.

Leverage Edu: A Growing Force in International Education

Founded seven years ago, Leverage Edu has carved a niche in the international education sector. The company offers a comprehensive suite of services, including counseling, application and admission support, and even financing solutions, to students seeking overseas education opportunities. Leverage Edu caters to a diverse student body, with a presence in India, Nigeria, and Nepal, among other countries.

Financial Performance and Investment Landscape

Leverage.biz secured $40 million in funding last July through a combination of debt and equity instruments. The Educational Testing Service (ETS) led this round. In total, the company has raised approximately $70 million across various funding rounds, with its most recent valuation hovering around $150 million. According to TheKredible, a startup data intelligence platform, Blume Ventures holds the largest external stake (16.9%) in Leverage Edu, followed by Tomorrow Capital and DSG Consumer Partners.

Revenue Growth Amidst Rising Losses

Leverage.biz’s financial performance paints a mixed picture. While the company’s operational revenue soared by 228% in FY23, reaching Rs 69 crore compared to Rs 21 crore in FY22, its losses also climbed by 70% during the same period, reaching Rs 103 crore in FY23 from Rs 47 crore the prior year.

ESOP Buyback Trend in the Indian Startup Ecosystem

The ESOP buyback trend continues to gain momentum in the Indian startup landscape. In 2023 alone, Indian startups facilitated nearly $802 million worth of ESOP buybacks, payouts, and liquidity events. This figure significantly surpasses the recorded amounts in 2021 and 2022, which stood at $440 million and $200 million respectively. 2024 has already witnessed several companies like Urban Company, MyGate, Classplus, Meesho, The Sleep Company, XYXX, and Pocket FM implementing similar ESOP buyback programs.