Education loan provider Eduvanz has raised INR 100 Cr in a Series B round led by Juvo Ventures, Sequoia Capital and Unitus Ventures among others.
Earlier in February 2021, the startup has raised $10 Mn in debt from several financial institutions including InCred Financial Services, Vivriti Capital, and Northern Arc Capital. It also raised $5 Mn in its Series A round from Sequoia Capital India and Unitus Jobs in August 2020.
The raised capital will be utilised in expanding its offerings, developing a stronger information technology (IT) infrastructure and also enhancing its artificial intelligence (AI) and machine learning (ML) capabilities for risk assessments before providing education loans.
To date, the Edtech platform has disbursed loans more than INR 500 Cr to as many as 30,000 learners. It further aims to disburse another INR 1,000 Cr in loan across all the lending products in the financial year 2022.
Started in 2016 by Varun Chopra and Raheel Shah, Eduvanz is one of the leading student loan provider companies that provide educational loans starting from zero interest for students. It was launched with the mission to empower students to make educated and informed decisions by providing free financial resources and unbiased advice.
The Mumbai based start-up also acquired edtech startup Klarity, online communication and consultation platform in November 2020. This acquisition is expected to help grow and expand the start-ups reach to a network of more than 300 educational institutes as well as industry advisers. Klarity is said to have empowered more than 5,000 career counselling sessions through individual counselling. In addition, the start-up is anticipating to venture beyond education finance and career counselling.
With 33 Lakh Indian students going abroad to study annually, India is the second-largest source of foreign students after China. According to the Reserve Bank of India (RBI), tuition fees and hostels for Indian students studying abroad have grown significantly with 44% from $ 1.9 Bn in 2013-14 to $ 2.8 Bn in 2017-18.
Expenditure and the expansion of overseas universities are highly anticipated in the future, overcoming the growing pandemic pressures. Although borrowing is an easy option for the average Indian student, it has dropped by 25% between 2015 and 2019.