Eduvanz raises over Rs 100 crore in funding led by Rethink Education
- ByStartupStory | December 27, 2022
Eduvanz, a supplier of student loans, has secured Rs 104.5 crores, or $12.6 million, from new and existing backers in its extended Series B round. This is the Mumbai-based company’s first equity investment for the year 2022.
According to Eduvanz’s regulatory filings with the Registrar of Companies, the board of directors approved a special resolution to issue 68,373 Series B1 CCPS at a price of Rs 15,283.71 per share in order to raise Rs 104.5 crore.
Sequoia Capital, Juvo Ventures, and Unitus Ventures contributed Rs 16.59 crore, Rs 29.04 crore, and Rs 16.59 crore respectively. Rethink Education Ventures led the round with Rs 41.5 crore. Sequoia now owns 32.4% of Eduvanz, while Rethink, Juvo, and Unitus hold 5%, 3.5%, and 2% of the company’s shares, respectively. Fintrackr believes that the company is worth approximately Rs 850 crore ($104 million) (post-money).
The company has so far raised more than $30 million in equity and loan rounds, with a Rs 50 crore debt round taking place in April. As Eduvanz was valued at $70 million in the most recent round, its valuation jumped by about 49%.
Students can get loans from Eduvanz to pay for their tuition, tutoring, and test preparation. Individuals who are salaried or self-employed can also apply for loans from it to pay for their up-skilling costs. Loans totaling Rs 337 crore were disbursed in FY22-FY22, according to the company.
Competitors of the six-year-old business include FinancePeer, GrayQuest, and Propelld. While GrayQuest recently secured Rs 31 crore in its Series A round, FinancePeer raised $38 million in a Series B investment sponsored by QED Fund in April. On December 13, Entrackr was the only source to report on its Series A. The largest player in this market, Mpower Financing, raised $152.5 million in a combination of loans and equity in July 2021.
Eduvanz’s operational revenue increased by a factor of two, to Rs 27.5 crore in FY22 from Rs 13.6 crore in FY21, while its losses increased to Rs 23.15 crore from Rs 10.44 crore the previous fiscal year.
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