SUMMARY
The raised capital will be used to augment technology, data science capacity, and creating product and distribution innovations
Kuhoo has on-boarded experienced global talents from across technology, data science, consumer, and student lending domains
Besides launching its innovative products, the fintech startup will be partnering with banks and other NBFCs along with top colleges and coaching centres across the world
Mumbai-based student loan fintech startup, Kuhoo has raised a whopping $20 Mn in seed funding round from Westbridge Capital. With this capital infusion, the fintech startup aims to provide online loans to students aspiring to study in universities both in India and abroad.
Kuhoo informed Inc42 that the round is an equity funding, and the raised capital will be used to augment technology, data science capacity, and creating product and distribution innovations.
“We combine our vast experience with advanced technology and data science to create risk and credit models. These models help us evaluate students’ potential employability and future incomes for various courses students enrol in. With this unique ability, Kuhoo can offer different products best suited to individual profiles of students from varied family backgrounds,” said Prashant A. Bhonsle, founder of Kuhoo.
Established by Bhonsle in 2021, Kuhoo offers student loans across several streams such as MBA, executive education, online courses, coaching classes, and even new age courses. It creates products based on students’ academic backgrounds, college, course rankings, and career prospects.
The startup informed that it has on-boarded experienced global talents from across technology, data science, consumer, and student lending domains. Besides launching its innovative products, it will be partnering with banks and other NBFCs along with top colleges and coaching centres across the world.
“West Bridge Capital has been committed to financial inclusion through long term investments in sectors like affordable housing finance and education. We strongly believe that Kuhoo will play an essential role in making these high-cost courses affordable, mainly for middle-class Indian families. We are excited to back Prashant and his talented team at kuhoo in their endeavour of creating one of the largest student lending institutions of India,” said Sumir Chadha, cofounder and managing director of Westbridge Capital Partners.
Over the years, the demand for student loans has considerably increased, stressing upon the importance of higher education to get better opportunities into the job market. In the previous year, education loan provider Eduvanz raised INR 100 Cr in a Series B funding round led by JuvoVentures, Sequoia Capital and Unitus Ventures, among others. Before this round, the startup bagged $10 Mn in debt from multiple financial institutions. It deployed funds to expand its offerings, develop a stronger information technology infrastructure as well as enhance its artificial intelligence (AI) and machine learning (ML) capabilities for risk assessments before giving out an education loan.
Another education-focused fintech startup, Propelld secured $35 Mn in Series B funding led by Westbridge Capital along with existing investors Stellaris Venture Partners and India Quotient. The startup planned to use funds to grow the loan book rapidly in a segment with low credit penetration, and offer new products for various verticals within education.
