Eduvanz claims to have enabled more than 25,000 learners through its point-of-sale (PoS) education loans platform
In November 2020, Eduvanz acquired the one-on-one networking and mentoring platform Klarity
The startup said its customer base increased fourfold and monthly disbursements increased threefold between April and December of last year.
Eduvanz, the education-focused fintech start-up based in Mumbai, has raised $ 10 million in debt financing from several financial institutions, including InCred Financial Services, Vivriti Capital and Northern Arc Capital. It will use the funds to expand its client base of students and learners seeking educational loans.
Eduvanz claims to have already empowered over 25,000 learners through its Point of Sale (PoS) lending platform with over 300 Cr INR disbursed. The company uses artificial intelligence (AI) and predictive analytics to assess risk and claim to disburse loans within hours.
Founded in 2016 by Varun Chopra and Raheel Shah, Eduvanz last raised $ 5 million in his round of series A of Sequoia Capital India and Unitus Ventures in August 2020. This cycle came in the midst of a growth spurt where its customer base increased fourfold and monthly disbursements increased threefold between April and December of last year.
The Eduvanz loan model
Eduvanz is one of the few fintech lenders looking to address the credit crunch in a particular vertical. The startup is working with students and institutions to enable IME-based loans under a “study now, pay later” model. It works in the K-12, test preparation and development segments, as well as with higher education students. Besides Eduvanz, the education fintech segment in India has seen very limited development. There are startups such as Leap Finance, which is based in Bengaluru, but which only focuses on higher education abroad. Incidentally, Leap Finance is also supported by Sequoia Capital.
Thanks to the Eduvanz platform, loans are facilitated thanks to a point-of-sale payment solution that the institutes integrate into their registration system. This allows instant on-site funding for students and parents. The company uses proprietary AI-based algorithms and predictive analytics to assess risk and offers loans based on the learner’s future employability.
CEO and Co-Founder Chopra said, “During the pandemic, we saw learners in India focus on learning and development. We are on the way to becoming a leader in the education loan finance market. The debt we have incurred further strengthens our position and will help us reach many more people who are looking to finance their education. “
In November 2020, Eduvanz has acquired the edtech start-up Klarity, an online networking and mentoring platform. The acquisition is expected to help Eduvanz expand its reach to a network of industry mentors and more than 300 educational institutions. Klarity is said to have enabled more than 5,000 career counseling sessions through one-on-one mentoring. With this, the startup is also looking to venture beyond education funding and into professional and academic counseling.