Eduvanz, a Mumbai-based finance company that is making education universally accessible by providing easy, transparent and speedy financial assistance using innovative technology solutions, announced it has raised $5 million in a series A round led by venture capital firm Sequoia Capital India.
The funding round also saw participation from Unitus which is an existing investor in the company. The newly infused capital will be used by the non-banking financial company (NBFC) to expand its presence in smaller towns, while also improving collection efficiencies and lending cycle management, the company said in a statement shared with ET.
“The funds will be utilised towards creating a seamless borrower experience with secure, scalable, innovative, and agile technologies to support the lending cycle,” as per the statement. “This includes new credit products, AI-based risk management, and easier collections to support borrowers through their lending journey.”
Founded in 2016 by Atul Sashittal, Raheel Shah, Varun Chopra, Eduvanz claims to have served over 10,000 borrowers since its inception, and has plans to disburse Rs 400-500 crore worth of loans over the next two years. The financier specialises in giving educational loans in tie-up with educational institutes through end-to-end digital channels.
“By combining innovative student-centric loan solutions, robust risk-assessment with cutting edge digital lending technology, Eduvanz is enabling higher enrolment for learners across colleges, universities, certification partners, institutes, and schools,” said Varun Chopra, CEO, Eduvanz, who along with Raheel Shah founded the company in 2016.
The company’s focus includes its credit scoring mechanism which helps it underwrite risks based on the “future employability” of the borrower.
“Eduvanz is catering to this by building a differentiated lending business with exceptional credit quality,” said Ashish Agarwal, Principal, Sequoia Capital. “Their future employability-based underwriting approach will make education and skilling more accessible to accelerate a diverse range of careers,” Agrawal said.
–AN
