Summary:
Propelld, secures $25 million in debt funding for its wholly-owned non-banking financial company (NBFC) subsidiary, Edgro
The round was led by Credit Saison India Private Limited, AU Small Finance Bank, InCred Financial Services Limited, and Northern Arc Capital Limited.
The infusion of capital is aimed at expanding Edgro’s reach and enhancing its offerings in the education finance sector
Propelld, an education-focused lending platform, recently secured $25 million in debt funding for its wholly-owned non-banking financial company (NBFC) subsidiary, Edgro. This substantial funding was raised from nine prominent lenders, including Credit Saison India Private Limited, AU Small Finance Bank, InCred Financial Services Limited, and Northern Arc Capital Limited.
The infusion of capital is aimed at expanding Edgro’s reach and enhancing its offerings in the education finance sector. Founded in 2019 by Bibhu Prasad Das, Victor Senapaty, and Brijesh Samantaray, Propelld provides innovative education loan financing solutions. These include “Study Now, Pay Later” products and Income Sharing Agreements (ISA) through its NBFC arm, Edgro. One of the standout features of Propelld’s offerings is collateral-free education financing, which makes it accessible to a broader range of students.
Propelld focuses on tier II and III cities, addressing the challenges students in these areas face when securing finances from traditional lenders. The company aims to bridge the gap in education financing in these underserved regions, providing students with the necessary financial support to pursue their educational aspirations.
Since Edgro commenced operations in July 2023, Propelld has raised nearly $40 million from investors such as WestBridge Capital, Stellaris Venture Partners, and India Quotient. The last significant fundraising was in February 2022, amounting to $35 million. With this latest round of funding, Propelld’s annual loan disbursal run rate has reached an impressive Rs 600 crore.
Financially, Propelld has shown remarkable growth. In the fiscal year 2023 (FY23), the company’s operating revenue more than doubled to Rs 75 crore, up from Rs 33 crore in FY22. However, this rapid growth has also been accompanied by a significant increase in losses.
Propelld operates in a competitive landscape, contending with several other education finance platforms such as Leap Finance, Financepeer, GrayQuest, Eduvanz, Auxilo, MPower Financing, and Credenc. Each of these companies has secured substantial funding over the past few years. For instance, Leap Finance raised $75 million in June 2022, and Credenc secured $25 million from Capital India in July 2021. In December 2022, Eduvanz raised $12 million, while GrayQuest and MPower Finance attracted $7 million and $150 million, respectively, in 2023. Additionally, earlier this year, Auxilo raised $6 million in debt financing.
Propelld’s strategic focus on non-traditional lending models, such as Income Sharing Agreements and collateral-free loans, positions it uniquely in the market. These innovative approaches not only cater to the financial needs of students but also mitigate the risks typically associated with education loans. By leveraging these models, Propelld aims to democratize access to education, particularly in regions where traditional financial institutions might be hesitant to lend.
The recent funding for Edgro is a significant milestone for Propelld, enabling it to scale its operations further and extend its impact on the education sector. With continued support from its investors and a clear focus on addressing the financial challenges faced by students in tier II and III cities, Propelld is well-positioned to become a leading player in the education financing landscape in India.
Related posts
Leave a Reply Cancel reply
Hot Topics
Subscribe for newsletter
* You will receive the latest news and updates on your favorite celebrities!
Stay connected