Mumbai, Aug. 15 -- QED-backed edu-fintech Leo1 is making sweeping cutbacks as it pivots away from its core lending business, seeking to stabilise operations and grow in new segments, according to multiple people familiar with the matter.

The company has undertaken significant rationalisation, shutting down its first loss default guarantee or FLDG model, scaling back underperforming business lines, and laying off staff.

Leo1's restructuring comes amid a broader slowdown in the edtech industry, including edu-fintech models. Companies started diversifying revenue streams and revisited business models after the pandemic-era boom faded, and investors grew sceptical about their sustainability. The Reserve Bank of India's (RBI) crackdown on ne...