Bengaluru headquartered SaaS unicorn LeadSquared is looking to go public in the next 18 to 24 months, a bold move that shows its confidence in AI driven enterprise software and global growth. Despite reporting a net loss of INR 162 crore in FY24, the company is optimistic about turning profitable and scaling up globally.
Founded in 2011 by Nilesh Patel, Sudhakar Gorti and Prashant Singh, LeadSquared has evolved from a niche marketing automation tool to a full stack CRM and sales execution platform serving over 2,000 enterprise customers across India and key international markets like US. With backing from WestBridge Capital and unicorn valuation in 2022, the company has raised over USD 188 million (~INR 1,626 crore) so far.
LeadSquared IPO: Timeline and Strategy
In multiple recent interviews, Co-founder and COO Prashant Singh mentioned that LeadSquared is working towards being IPO ready in the next 12 to 18 months with a clear path to profitability. This points to a potential public listing by late 2026 or early 2027.. Singh has a dual focus strategy: doubling down on R&D (especially AI) and scaling up international revenues.
“We are prioritising profitability while increasing efficiency across operations. AI is allowing us to do more in the same amount of time”, Singh said.
Singh’s comments reflect a mature balancing act: on one hand aggressively embedding AI into core products; on the other, tightening cost structures and re-evaluating pricing models.
AI as a Competitive Advantage
While some SaaS companies are bracing for an “AI winter”, LeadSquared is betting on “purpose built AI”, not hype. The company positions itself as a “shaper” in the McKinsey AI framework—neither building foundational models from scratch nor consuming APIs, but customizing and fine tuning existing models for vertical specific outcomes.
Some of the notable use cases of its AI strategy are:
- Lead Potential Prediction: Forecasting sales conversion likelihood.
- Knowledge Base Bot: Reducing support workloads by up to 60%.
- Ticket Summarization and Sentiment Detection: Enhancing service responsiveness.
- Response Refinement Tools: Ensuring uniform tone and improved communication across sales teams. AI is also boosting internal productivity, particularly across product teams and engineering workflows.
Financials
LeadSquared reported a slight increase in net loss to INR 162.24 crore in FY24, up 0.73% from INR 161.06 crore in FY23. But operating revenue grew 9.12% to INR 279.29 crore, total income (including other sources) 9.77% to INR 325.2 crore.
Despite the widening losses, cash and cash equivalents are strong at INR 558 crore, enough to fund operations and R&D before going public.
Employee costs rose 12.67% to INR 306.23 crore, in line with aggressive talent acquisition and tech investments. Other expenses were cut down by 7.2%, showing early signs of fiscal discipline in non-core areas.
Global Footprint and Sector Diversification
Originally an edtech company from India, LeadSquared has since diversified into sectors like healthcare, BFSI, manufacturing and hospitality, Thus, it is not overexposed to a single vertical. This diversification has been a blessing in disguise after the edtech correction.
Currently 70% of revenue comes from India, but Singh has a target to reach 50:50 India-global split in the next 2-3 years. Key US clients are Path Behavioral Health, Stepping Stones and Posterity Health, healthcare and education are the focus verticals in the US market.
“We are already one of the top 3 CRM players in India. Our next big step is to scale the US market” Singh said.
Product Portfolio: Beyond CRM
The company’s product portfolio has gone beyond CRM. Key offerings include:
- Lending Cloud and Loan Origination System: Full cycle automation in financial services.
- Service CRM: Post sales service and customer satisfaction.
- FloStack: A proprietary automation engine for complex workflows for clients.
This vertical SaaS model allows LeadSquared to deliver highly customized solutions, increasing client stickiness and pricing power.
Evolving SaaS Pricing Models with AI
As AI becomes part of SaaS, LeadSquared is also exploring hybrid pricing models that combine traditional licensing with transaction based or outcome based pricing. According to Singh, enterprise customers are open to these models especially when AI delivers measurable ROI.
“Customers are more anxious than hesitant. They see the value but understand it may take a few iterations to perfect. We’re committed to getting it right” Singh said.
IPO in Sight, But Challenges Ahead
While LeadSquared is optimistic about its growth, the path to IPO isn’t without hurdles. Becoming profitable with high R&D investments, competing with global players like Zoho and Freshworks and convincing investors of sustainable growth in a volatile macro environment will be tough.
But LeadSquared is better placed than many of its peers—thanks to its differentiated AI strategy, strong cash reserves and a focused leadership team. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.