Education Focused Lending Startup Propelld Raises $25M In Debt Round

Propelld is an education-focused fintech company founded in 2017, inspired by the works of economist Milton Friedman, with the mission to revolutionize the financing of the entire education ecosystem. The company was started by three founders – Victor, Bibhu, and Brijesh – who came from backgrounds that valued education highly and left their corporate jobs to pursue this mission. Propelld faced early challenges in finding lending partners and navigating regulatory hurdles, but has since secured backing from seasoned investors like the Indian Angel Network, India Quotient, Stellaris Venture Partners, and WestBridge Capital Management, as it continues its journey to transform education financing in India.

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Propelld, a fintech startup focused on education, has secured $25 million in debt for its fully-owned non-banking financial company, Edgro Finance. This funding round saw participation from nine lenders, including Credit Saison India, AU Small Finance Bank, InCred Financial Services, and Northern Arc Capital.

Earlier, in February 2022, the Bengaluru-based company raised $35 million in a Series B funding round led by WestBridge Capital, with support from Stellaris Venture Partners and India Quotient. Nikunj Agarwal, Head of Debt and Lending Alliance at Propelld, stated that the increased debt will enable more flexible loan options for students.

“As Edgro grows and improves our services, we’re thankful for the strong backing from our financial partners. This support allows us to advance our mission of making education accessible to all and empowering more students,” Agarwal said. He also mentioned that Edgro is actively looking for bank loans and co-lending partners to further expand the company’s mission.

Established in 2019 by graduates of IIT Madras – Bibhu Prasad Das, Victor Senapaty, and Brijesh Samantaray – Propelld offers innovative education financing solutions. Their Study Now and Pay Later programs, along with Income Sharing Agreements (ISA) through Edgro, provide accessible pathways for students. Working closely with over 2,000 educational institutions spanning edtech, K12, universities, schools, and upskilling, Propelld has pioneered collateral-free education financing. Noteworthy is their impressive annual disbursal run rate of Rs 1,200 crore, coupled with NPAs below 1%, demonstrating their commitment to financial prudence and student support.

Edgro, a fully owned subsidiary of Propelld, began its operations in October of the previous year. Propelld boasts various lending partnerships, including Avanse Financial Services, Aditya Birla Capital, and JM Financial, alongside Edgro.

“The education lending sector holds immense potential for growth, particularly in tier 2 and tier 3 cities, where students often encounter challenges in obtaining financial assistance from established lenders due to limited accessibility. Many are left with no choice but to resort to high-interest loans from private lenders or even resort to pledging gold, further exacerbating their financial burdens. Edgro, which only started operating in July 2023, has managed to secure a substantial amount of funding, owing to its commitment to the broader mission of making education more accessible through innovative financial solutions,” the startup explained.

Propelld, an education-focused fintech startup, has secured 25 million in debt funding for its subsidiary edgro finance to expandits innovative education financing solutions. The company previously raised 35 million in Series B funding and is committed to making education more accessible, especially in tier 2 and 3 cities where students often lack access to affordable financing options. Propelld’s collateral-free programs like “Study Now, Pay Later” and Income Sharing Agreements, along with its impressive growth metrics and partnerships, demonstrate its mission to empower students through innovative financial services.