Leverage Edu: caught between novelty and efficiency

Abstract

Learning outcomes The learning outcomes are as follows: 1. enable students to appreciate how a platform company can navigate through diminishing network effects; 2. enable students to foresee the downside of scaling up a platform business; 3. enable students to appreciate the trade-off between an efficiency-centric and a novelty-centric business model for platform businesses; and 4. enable students to create a platform business model canvas for a company. Case overview/synopsis The teaching case discusses the dilemma of Akshay Chaturvedi, the founder of Leverage Edu, an artificial intelligence-enabled platform for students seeking admission to foreign universities. It had received nearly US$9.6m in funding until December 2021. Chaturvedi wanted to make the best use of his funds, but was torn between turning Leverage Edu into an “efficient platform” and transforming it into a “novelty-centric platform”. The teaching note attempts to resolve Chaturvedi’s dilemma by analyzing competitors using the platform canvas model and determining how Chaturvedi could create and use network effects to Leverage Edu’s advantage. The case is based on secondary data that is freely available in the public domain. Complexity academic level This case is intended for MBA Entrepreneurship students taking a platform business elective. It can also be used in faculty and management development programs under the banner “Technology and Platform Businesses”. Supplementary materials Teaching notes are available for educators only. Subject code CSS 3: Entrepreneurship.