**LeadSquared Shifts Focus to BFSI Sector for Revenue Growth**
LeadSquared, a SaaS unicorn backed by WestBridge Capital, is strategically pivoting towards the banking, financial services, and insurance (BFSI) sector, anticipating that it will account for 50% of the company’s revenue within the next two years. This shift positions BFSI ahead of its other significant revenue streams, which include edtech and healthcare. Prashant Singh, co-founder and COO of LeadSquared, shared insights in a recent interview, stating, “BFSI can contribute 40%-50%. While education will continue to grow, its revenue share may decrease to around 20%.”
The company is optimistic about the growth of its other sectors, including healthcare and manufacturing. LeadSquared specializes in automating sales and marketing processes, simplifying customer engagement for enterprise teams. To date, the company has raised $188 million across ten funding rounds and achieved unicorn status in 2022 after securing $153 million in a Series C round led by WestBridge Capital. Notable investors include Gaja Capital and Stakeboat Capital.
Currently, revenue distribution shows an equal split between BFSI and edtech at approximately 30% each, with healthcare contributing 10% and the remainder from other sectors. LeadSquared’s clientele features prominent names such as LIC Housing Finance, Poonawalla Fincorp, Practo, College Vidya, and Bajaj.
The decision to concentrate on the BFSI sector stems from its vast potential for customer outreach, as insurance companies, brokerages, wealth management firms, and banks frequently engage in extensive customer interactions. BFSI has rapidly adopted technology, making it a lucrative market for startups that can address their challenges. Singh noted, “These companies have strong balance sheets, reducing the risk of customer defaults, unlike the issues faced in edtech recently.”
LeadSquared began intensifying its focus on BFSI in 2022, coinciding with the downturn in the edtech sector. Previously, its edtech clients included Byju’s, Vedantu, and Unacademy. “What we did with edtech in the past, we’re doing with BFSI today,” Singh remarked.
The company primarily operates in India and the US, with India contributing 70% of its revenue, the US 25%, and the remaining 5% from other regions. Recently, LeadSquared expanded into the Middle East to leverage the region’s growing emphasis on technology and AI, moving away from oil dependency. Singh added, “Having an office in Dubai provides us a foothold in South Africa and the broader African continent without a direct presence there.”
**FAQ**
**What is LeadSquared’s primary focus for future growth?**
LeadSquared is focusing on the banking, financial services, and insurance (BFSI) sector, expecting it to contribute significantly to its revenue in the coming years.
