Propelld’s Edgro Secures $25 Million in Debt Funding to Democratize Education Lending
- ByStartupStory | May 17, 2024
Propelld, a leading fintech firm specializing in education lending, announced today that its wholly-owned subsidiary, Edgro, has successfully raised over USD 25 million through debt financing. This strategic move highlights the company’s mission to enhance financial access for students, particularly in India’s tier 2 and tier 3 cities, where traditional financial services are often limited.
Edgro, which operates as a licensed Non-Banking Financial Company (NBFC), managed to secure this substantial funding from nine prominent lenders, including Credit Saison India Private Limited, AU Small Finance Bank, InCred Financial Services Limited, and Northern Arc Capital Limited. The funds will be pivotal in offering more flexible loan options to students who might otherwise resort to high-interest loans from private lenders or pledge personal assets.
Nikunj Agarwal, Head of Debt & Lending Alliance at Propelld, expressed his gratitude towards the financial partners, stating, “We are leveraging these funds to ensure that more students can access flexible loan options. As Edgro continues to expand its reach and enhance our offerings, we are grateful for the robust support from our financial partners, which enables us to further the mission of democratizing education and empowering more students.”
Despite being operational for only six months since July 2023, Edgro’s rapid growth and substantial fundraising efforts underscore the strong confidence and trust from banks and NBFCs in its operational excellence. This achievement not only reflects the financial partners’ belief in Propelld’s vision but also signifies a shared commitment to financial inclusion and equitable access to education.
Propelld, founded in 2019 by Bibhu Prasad Das, Victor Senapaty, and Brijesh Samantaray, has been at the forefront of introducing innovative education financing solutions. Their pioneering products, such as Study Now and Pay Later and Income Sharing Agreements, have set a new standard in the education loan segment. By adopting unique credit assessment techniques, Propelld has made collateral-free education financing a reality for many students.
The education lending sector in India holds immense potential, especially as the demand for higher education grows in less urbanized regions. Propelld’s efforts, through Edgro, aim to bridge the financial gap and support the academic aspirations of students from all backgrounds.
Edgro is actively seeking further collaborations with bank borrowings and co-lending partners to expand its mission. The company’s ongoing commitment to financial innovation and inclusion continues to drive its success and impact in the education sector.
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