Key Takeaways
- Leverage Edu acquired Brazil-based Mundus Agency, marking its first international acquisition and entry into South America
- The startup is preparing for an IPO in India targeting ₹2,000-3,000 Cr at a valuation exceeding $900 million
- Operating revenue grew 112% to ₹375 Cr in FY26, with the company claiming EBITDA profitability
Leverage Edu has acquired Brazil-based Mundus Agency, marking the Indian study-abroad startup's first international acquisition and its entry into South America. The deal, confirmed by Inc42, comes as Leverage Edu prepares for a public listing in India that could raise ₹2,000-3,000 Cr.
Financial terms of the acquisition were not disclosed. Mundus Agency helps Brazilian students pursue higher education abroad, a segment growing fast in Latin America's largest economy.
Why Brazil matters for study-abroad platforms
Brazil sends nearly 90,000 students overseas each year, according to industry estimates. That figure has jumped about 50% since 2017. The country's overseas diaspora now exceeds 50 lakh people, comprising students, skilled professionals, and healthcare workers. For a company selling education and talent mobility services, this is a market worth chasing.
Prior to this deal, Leverage Edu operated across South Asia, Africa, and the Middle East. India still dominates the revenue mix at 50-55%, followed by Africa at 25%. South Asia and the Middle East contribute roughly 10% each. Adding South America diversifies that concentration, though the impact will depend on how quickly the startup scales the new region.
IPO preparations underway
The acquisition is not an isolated move. Leverage Edu has initiated discussions with investment bankers for an IPO expected next year. Sources told Inc42 the offering could range between ₹2,000-3,000 Cr, combining a fresh issue of shares with an offer-for-sale component. The exact split has not been finalized.
The startup is targeting a valuation above $900 million. Bankers are positioning the company alongside platform startups like Zomato and ixigo, expecting similar valuation multiples. That comparison will face scrutiny. Zomato and ixigo are consumer platforms with high transaction volumes and established unit economics. Leverage Edu will need to demonstrate comparable metrics to justify those multiples.
Financials show rapid growth
On paper, the numbers look strong. Leverage Edu claims it turned EBITDA profitable in FY26. Operating revenue jumped 112% to ₹375 Cr from ₹173 Cr in FY25. The startup added over 55,000 students last fiscal, bringing its total customer base above 1.75 lakh.
The company has also expanded beyond core counseling services. Its horizontal stack, covering fintech, accommodation, travel, and career support, now generates 25-33% of total revenue. This diversification matters for IPO positioning. Single-product education companies face valuation pressure. Platforms with multiple revenue streams get better treatment from public market investors.
More acquisitions planned
Leverage Edu plans to pursue acquisitions aggressively in both domestic and international markets. The Mundus deal signals appetite for inorganic growth as the company builds its pre-IPO narrative. Buying established players in new geographies is faster than organic expansion, and it adds revenue immediately.
The risk is integration. Study-abroad services are relationship-heavy businesses. Acquiring a local brand gets you market access, but retaining that brand's reputation and counselor network requires execution. The startup has not disclosed how it plans to integrate Mundus operationally.
Logicity's Take
For fintech and finance teams watching the edtech IPO pipeline, Leverage Edu's horizontal expansion is the more interesting signal here. The company's fintech and ancillary services now contribute up to a third of revenue, moving it closer to a financial services model than a pure counseling play. If IPO bankers can frame it as a platform company rather than an education consultancy, multiples improve significantly. The $900 million valuation target is ambitious for Indian edtech in 2025, but the 112% revenue growth and claimed profitability give them room to negotiate.
Frequently Asked Questions
What is Leverage Edu's current valuation?
The startup is targeting a valuation above $900 million for its upcoming IPO. Its last known private valuation was approximately $130 million following a Series C round in 2022.
When is the Leverage Edu IPO expected?
The company has initiated discussions with investment bankers and is targeting a public listing next year, likely in 2026.
How many students does Leverage Edu serve?
The startup claims a customer base exceeding 1.75 lakh students, having added over 55,000 students in the previous fiscal year.
What services does Leverage Edu offer beyond counseling?
The company has expanded into fintech (education loans), accommodation services, travel assistance, and career support, which together account for 25-33% of total revenue.
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Source: Inc42 Media / Debarghya Sil
Huma Shazia
Senior AI & Tech Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
