India’s Leap raises $65m, says US still top destination despite job opportunity woes

Indian edtech startup Leap, which offers a platform for students aspiring to study abroad has raised $65 million in a mix of primary and secondary equity led by UK-based private equity asset manager Apis Partners.

The investment was led by two funds managed by the PE firm—Apis Growth Markets Fund III and Apis Global Growth Fund III.

Existing investors Owl Ventures, Jungle Ventures and Peak XV Partners also participated in the round.

Leap was founded in 2019 by IIT-Kharagpur batchmates Vaibhav Singh and Arnav Kumar. The startup runs programmes including LeapScholar, LeapFinance, GeeBee and Yocket, which offer a suite of products catering to overseas education. These include preparations for international tests such as IELTS, TOEFL, SAT and so on; admissions and visa counselling; as well as financial offerings such as overseas student loans, bank accounts, credit cards and money remittance services.

In a response to DealStreetAsia, Singh said the funding will enable Leap’s expansion into Taiwan, China, and Malaysia.

The round comes two and half years after the firm raised its Series D round of $75 million led by Silicon Valley-based Owl Ventures.

“⁠We wanted to raise on our own terms and most importantly, when we’re profitable. Since our Series D round, we’ve focused on building a sustainable and impactful business model.” Singh said.

While the firm did not comment on its bottom line numbers, Kumar said the company has grown 5 times since its last fundraise.

Leap’s latest funding comes at a time when the study-abroad market faces growing uncertainty. While the sector experienced a strong recovery post-COVID, 2024 saw fresh challenges for students seeking international education.

Regulatory changes in key destinations like Canada, Australia, the US, and the UK have significantly impacted international student enrollments. Canada’s plan to cap student visas could lead to a 35% decline in international enrollments over the next two years, while Australia has increased financial requirements for visas and restricted geographic mobility for graduates seeking post-study work opportunities, according to a report by Redseer Consulting.

Meanwhile, Indian students in the US have faced increasing challenges in securing jobs post-graduation, adding another layer of complexity for those considering overseas education.

⁠In a response to DealStreetAsia, Kumar said that despite the headwinds because of the job opportunities, ⁠the US remains one of the biggest destinations.

“Despite regulatory challenges and market shifts in destinations like Canada, we remain optimistic. We’re adapting by expanding partnerships, expanding to different countries, enhancing student support, and making our products better to make sure students find their best match for a great career.” Kumar added.

Apis Partners, which manages $2.3 billion in assets, is an impact-focused private equity firm that backs growth-stage financial services companies with established product-market fit. Other India-focused investments by Apis include MoneyView, RenewBuy, Cashfree, and Hero FinCorp.

Avendus Capital acted as the exclusive financial advisor to Leap and its shareholders for this transaction.

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