Propelling Fintech To Newer Heights The company has plans to transition towards more relationship-based offerings shortly which would involve assisting students in rating and reviewing courses and educational services, enabling them to make informed decisions and fostering better connections.
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Propelld is a FinTech company with a unique focus on the education ecosystem, leveraging the best practices and tools of the financial services industry to make the education ecosystem efficient. Education represents one of the most significant expense items for Indian families and the company recognizes that it requires specialized attention to ensure optimal outcomes. Propelld operates as a B2B2C entity, partnering with educational institutes to provide financial products and enhance their services for learners. Thus, their customer base comprises the institutes and the students/parents. Their domain is relatively unexplored, with no significant players in traditional lending.
"The education sector's unique risk-return tradeoff and opportunity cost may not appeal to traditional lenders, but Propelld recognizes the potential of this market. Our deep understanding and experience in this space have convinced us that it holds great promise for a large lender capable of taking calculated risks and being adaptable. As education is the first expense for a student, building a relationship here could provide an excellent starting point for a long- term association," said Bibhu Prasad Das, co-founder, Propelld.
The company has plans to transition towards more relationship-based offerings shortly which would involve assisting students in rating and reviewing courses and educational services, enabling them to make informed decisions and fostering better connections. Even while chasing growth, Propelld believes that profitability is the one thing capable of justifying its value to all stakeholders, including customers, employees and investors. 2023 has marked a turning point for the company. Propelld invested in building a strong senior management team, bolstered its infrastructure, and expanded its tech and product teams to foster innovation while increasing its headcount fivefold to expand into multiple markets simultaneously. Propelld anticipates increased efficiency and strives to achieve a one per cent return on assets, the next financial year which would not only enable the company to cross the break-even point but also realize profits. The company's long- term goal would be to attain a gold-standard level of four to five per cent return on assets within the next three to four years, supported by a large loan book, thereby paving the way for a potential listing.
"As a company operating in the education finance sector, we are impressed with the proactive measures taken by the government to safeguard the interests of the general public. The rise of sophisticated fraud and foreign investment in inappropriate activities has made such measures a necessity. The government's crackdown on illegal apps and implementation of digital lending guidelines have been much-needed and timely. While adhering to the regulations can be operationally challenging, we believe it is crucial for ensuring a cleaner and more trustworthy ecosystem. From a long-term perspective, these steps by the government will enable companies like Propelld to facilitate learning and contribute towards India becoming a global intellectual powerhouse," added Das. The company's vision is to democratize access to education. Propelld acknowledges that financial products have traditionally played a crucial role in any ecosystem to achieve the goal. The company leverages financial technology to offer innovative solutions that simplify the education financing process and make education more accessible to all.
FACTSHEET:
Amount of funding received – Series B - US$35M
Year of inception – 2017
Number of employees – close to 400-500
No. of app downloads – We are Web-based
