Eduvanz Raises $5 Million In Series A Funding Led By Sequoia India
Eduvanz, the digital non-banking company, received $5 million as a part of its Series A round. The round is led by Sequoia India, accompanied by the existing investor – Unitus Capital.
Eduvanz said that the funds will be invested for creating technologies around artificial intelligence-based risk management and easier collections for supporting borrowers. Eduvanz is venturing out for creating new credit products and advance the company’s reach in the tier 2 and tier 3 geographies in India.
Eduvanz offers student loans in upskilling, school fees. Eduvanz uses social media scores, education scores, and takes guardians and parents as guarantors for improving the underwriting process. Eduvanz’s customer base includes salaried and self-employed individuals that search for upskilling or cross-skilling. The customer-base also includes parents searching for flexible fee payment solutions for schools, coaching, and test preparation.
The Chief Executive of Eduvanz, Varun Chopra, said, “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% of the total workforce receives any formal skill training. By combining innovative student-centric loan solutions, Eduvanz is enabling higher enrollment for learners across colleges, universities, certification partners, institutes, and schools." Loans are granted in association with educational institutions in a secured digitized end-to-end platform.
The Principal of Sequoia Capital India LLP., said, “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.”
Eduvanz has aimed to disburse Rs. 400-500 crore in loans in the coming two years.
From its inception time, Eduvanz has enabled more than 1000 borrowers, deploying Rs. 150+ crores in loans.
Presently, Eduvanz has helped skill-seekers in 240+ cities and collaborated with 300+ institutes in India.
With the COVID-19 pandemic affecting positive shifting in Indian ed-tech space, schools, and universities moving to online mediums for continuing classes, investors are aggressively looking for investing on Indian ed-tech startups.
Venture Intelligence data suggests that during the first half of 2020, Indian ed-tech startups received almost $795 million, which is a significant rise compared to $108 million in the previous year.
The likes of BYJU’s, Vedantu, Toppr, and Unacademy have raised funds this year and ready to take hold of their next round of funding.
BYJU’s also acquired an online ed-tech platform that delivers online coding to school students for $300 million. It is known to be one of the biggest exits in the Indian ed-tech space.