PaySense Cofounder’s New Startup Bags $25.5 Mn In Seed Funding

PaySense cofounder and former PayU Credit CEO Prashanth Ranganathan’s overseas education-focussed fintech startup Zinc has emerged out of the stealth mode and raised $25.5 Mn (about INR 214 Cr) in a seed funding round led by Nexus Venture Partners. 

The round also saw participation from Quona Capital, EDBI, Global Ventures, and Saison Capital. 

The startup plans to utilise the capital to focus on product innovation, scale up AI tools and expand its suite of offerings, it said in a statement.

“Our full suite of services is designed to empower Indian parents with the right tools to invest confidently in their children’s education while mitigating the financial pressures associated with studying abroad,” said Zinc founder and CEO Ranganathan.

Founded in 2023 by Ranganathan, Zinc claims to be an “edu-wealth” startup. It guides Indian students who want to study overseas. It also aims to provide the families of these students USD-denominated investment tools and tailored financial products to meet the rising costs of overseas education and protect them against currency fluctuations.

The startup has launched a product suite called ‘Zinc Honors’ which leverages Zinc’s AI-powered edu-counsellor ‘Ada’ to provide guidance to aspiring students to study overseas.

Zinc claims to have obtained the Registered Investment Advisor (RIA) licence from the Securities and Exchange Board of India (SEBI). It has also got an in-principle approval to operate as a payment service provider (PSP) .

The startup said it has also applied for a brokerage licence from the International Financial Services Centres Authority (IFSCA) in GIFT City.

“These licences empower Zinc to offer personalised investment advice, secure cross-border payment services, and access to global markets, all within a tax-efficient framework,” the statement added.

Zinc aims to be a “full-stack cross-border financial services platform for Indian families” to offer them a suite of solutions to address the complexities of overseas education.

Commenting on the fundraise, Nexus Venture Partners MD Anup Gupta added, “… Nexus is delighted to partner again with Prashanth and Team Zinc in their vision to support parents and students in realising their global education goals in a planned and transparent manner with a best-in-class combination of education advisory and financial services platform.”

The startup will leverage Ranganathan’s experience in the fintech space to scale up its offerings and create a niche for itself. Ranganathan was one of the cofounders of fintech startup PaySense, which was acquired by PayU in 2020. Subsequently, he served as the head of PayU Credit and resigned as its CEO in September last year to float his new venture. 

He previously also cofounded Truvie Security Inc, which was acquired by cross-border payments giant PayPal in 2011. Afterwards, Ranganthan also had a four-year long stint at PayPal. 

The big-ticket fundraise comes at a time when the homegrown edtech sector is witnessing a tumultuous period. Overall, the Indian edtech startups secured a mere $283 Mn of funding in 2023 compared to $2.4 Bn in 2022, down 88% year-on-year (YoY).