Education loan firm and financial technology company Eduvanz successfully raised $10 million in debt funding from different financial institutions. Following this, the company seeks to expand its growth and target more customers in the long run.
Among the investors for the debt funding include InCred Financial Services, Northern Arc Capital, and Vivriti Capital.
Founded in 2016, Eduvanz provides Indian students access to loans or funds that help them address their schooling needs. This can pay for school fees, test prep, and coaching-related fees. This also provides salaried and self-employed individuals access to funds for improving their skills, says Mint.
In addition to this, Entrepreneur states this allows Indian learners to get low-cost loans through its platform. As of writing, the company has already provided loans ranging from Rs. 300 crore to more than 25,000 individuals.
During the height of the global health crisis that affected the whole world, Entrepreneur reveals that Eduvanz gained more customers from April to December in the last year alone. Its customer base reportedly expanded by up to four times, while the disbursal of the loan every month expanded up to three times.
The company leverages artificial intelligence technology to help determine probable candidates and risk factors, as well as gauge the employability of borrowers. The use of AI and its algorithm allows for fast loan disbursal within a few hours.
In a statement, chief executive officer and company co-founder Varun Chopra said, “During the pandemic, we found that learners in India focused on learning and up-skilling themselves. We are moving towards becoming a leader in the financing-lending market 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,” continued Chopra.
The company currently provides services to more than 240 cities and across 20 states. With the $10 million debt funding, Eduvanz aims to expand more across various locations.