Eduvanz Secures ₹100 Crore Funding Round

Funding Expansion and New Products

Eduvanz, an education loan provider, has raised ₹100 crore to fuel its expansion plans and introduce new products in the upcoming quarters. The Series B funding round was led by JuvoVentures, Sequoia Capital, and Unitus Ventures, among others.

Utilization of Funds

The company intends to utilize the funding to bolster its information technology (IT) infrastructure and enhance its artificial intelligence (AI) and machine learning (ML) capabilities for more effective risk assessments before disbursing education loans. Additionally, Eduvanz plans to hire across various verticals including distribution, institute partnerships, technology, and operations.

Company Background

Established in 2016 by Varun Chopra and Raheel Shah, Eduvanz has disbursed loans exceeding ₹500 crore to over 30,000 learners. In the fiscal year 2022, the company aims to disburse another ₹1,000 crore across all its lending products.

Previous Funding Rounds

Earlier in February 2021, Eduvanz secured $10 million in debt funding from multiple financial institutions including InCred Financial Services, Vivriti Capital, and Northern Arc Capital. This debt funding is utilized for loan disbursement without involving equity.

Growth Prospects

With India poised to be the fastest major economy and the gradual easing of COVID-19 cases, there is a surge in demand for reskilling and enrollment in new courses. According to Chopra, the raised funds provide the company with a strong foundation for its next phase of growth in India’s education lending sector.

Operational Model

Eduvanz operates on a ‘study now-pay later’ model, offering equated monthly installment (EMI)-based loans to students from kindergarten to grade 12, higher education, and upskilling courses. The company competes with Leap Finance, focusing on lending for education abroad.