Eduvanz Raises $10 Mn In Debt Funding From Vivriti Capital, Others
The company grew fourfold in customer base and threefold in monthly disbursal of loans
Fintech non-banking finance company (NBFC) Eduvanz enables students to study-now-pay-later at zero per cent interest rates on Tuesday announced to have raised $10 million in debt funding from multiple financial institutions including InCred Financial Services, Vivriti Capital, and Northern Arc Capital.
The platform aims at changing the way India pays for education by enabling learners to apply for low-cost loans via its digital platform.
"During the pandemic, we have found that learners in India focused on learning and upskilling themselves. We are moving towards becoming a leader in the financing-lending market for education. The debt we have raised further strengthens our position and will help us reach out to many more who are looking to fund their education," said Varun Chopra, chief executive officer, and co-founder, Eduvanz.
It has already enabled more than 25,000 learners and has disbursed loans worth INR 300 crore. During the period of April-December 2020 when the pandemic hit the unique customer base of the company grew by four times and monthly disbursal of loans grew up three times, the statement said.
"As a technology-enabled debt platform, we are glad to associate with Eduvanz. We are aligned with Eduvanz in the belief that access to credit is a critical ingredient for development. We appreciate the company's effort to help the youth of the county by providing access to finance and counseling," shared Irfan Mohammed, CBO, Vivriti Capital.
They use proprietary artificial intelligence (AI) based algorithms and predictive analytics to provide loans based on the future employability of learners. Using the mobile app, end-to-end processing from Loan Application to Credit Assessment to Disbursal happens completely online in a matter of a few hours.
"Eduvanz has created a niche business model that supports skill development and employment. The company plays a crucial role in helping interested students secure funding, impacting their lives and livelihoods positively. We are excited to partner with such an institution that addresses a large untapped market and simultaneously creates a lasting impact," added Bama Balakrishnan, COO, Northern Arc Capital.
They have a presence across 20 states, over 240 cities, and cover over 25 skill industries.
The company co-founded in 2016 by IIT Madras alumni Varun Chopra, and IIM Ahmedabad alumni Raheel Shah, with the mission to make education accessible had raised $5 million in Series A funding from Sequoia and Unitus Ventures in August last year.