[Funding alert] Fintech startup Eduvanz raises $5M in Series A led by Sequoia India
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Eduvanz, a new-age digital finance NBFC that claims to provide affordable and convenient education loans, has raised $5 million in Series A funding, led by Sequoia India. Existing investors Unitus have also participated in this round.
The funds will be utilised by the Mumbai-based lender towards creating a seamless borrower experience with secure, scalable, innovative, and agile technologies to support the lending cycle. This includes new credit products, AI-based risk management, and easier collections to support borrowers through their lending journey. The funds will also be used to expand to Tier-II and III cities in India with a larger team.
"We are solving problems directly linked to nation-building as well as growth of the Indian industry. Over the next decade, our country will need skilled workforces trained in new technologies and new skills. By 2022, we need 700 million skilled workers. However, only 10 percent of the total workforce receives any formal skill training. By combining innovative student-centric loan solutions, robust risk-assessment with cutting edge digital lending technology, Eduvanz is enabling higher enrollment for learners across colleges, universities, certification partners, institutes, and schools," said Varun Chopra, CEO, Eduvanz.
Eduvanz was founded by Varun Chopra and Raheel Shah in 2016 with the mission to financially empower students to choose their dream careers at institutes and colleges of their choice by having access to loans. It is a new-age technology led NBFC focused on loans for skilling as well as school fees. The startup said it leverages technological solutions to improve customer success in the lending industry to make credit assessment and end-to-end loan processes quicker, simpler, and more efficient.
Ashish Agrawal, Principal, Sequoia Capital India LLP added,
“There is a large unmet credit need for education in India. Eduvanz is catering to this by building a differentiated lending business with exceptional credit quality. Their future employability-based underwriting approach will make education and skilling more accessible to accelerate a diverse range of careers. This will be even more critical in the post-COVID-19 economy which has triggered an urgent need for skilling and reskilling as businesses undergo massive digital transformations needing the workforce to evolve and keep up.”
Eduvanz gives access to loans starting from zero interest in collaboration with educational institutes via a fully digitized end-to-end platform — from lead on-boarding to loan repayment. Its customers include salaried/self-employed individuals looking to upskill/cross-skill themselves, students looking for skill certifications, and the K-12 segment comprising parents looking for flexible fee payment solutions for schools, coaching, and test preparation.
The company aims to disburse Rs 400-500 crore in loans over the next two years. Since 2016, it claims to have enabled over 10,000+ borrowers, deploying more than Rs 150 crore in loans with close to zero percent credit losses. Till date, Eduvanz has helped skill-seekers across 240+ cities with 300+ institute partnerships covering 25+ skills industries.