Sequoia-Backed Eduvanz Secures $12.6 Mn Funding From Rethink Education, Others

Education-focussed lendingtech startup Eduvanz has secured $12.6 Mn (INR 104.5 Cr) in its extended Series B funding led by new investor Rethink Education Ventures.

The round saw participation from S3 Partners Group, Juvo Ventures, Sequoia Capital and Unitus Ventures. 

According to regulatory filings, Eduvanz has allotted 10 equity shares and 68,373 Series B1 Compulsorily Convertible Cumulative Preference Shares (CCPS) at an issuance price of INR 15,283.71 apiece to the said investors.  

Sequoia Capital and Unitus Ventures invested INR 16.5 Cr each while Juvo Ventures, Rethink Education and S3 Partners Group pumped INR 29.04 Cr, INR 41.5 Cr and INR 76.4 Lakh respectively in the startup.  

The development comes a few months after Eduvanz reportedly raised INR 50 Cr debt funding from MAS, Vivriti, Oxyzo and Unifi AIF. 

Set up in 2016 by Varun Chopra and Raheel Shah, the lendingtech startup offers online education loans to students and working professionals, seeking to upskill at zero interest rates. 

The startup follows a study-now-pay-later model and works with academic institutions and students. It mainly focuses on K-12 students preparing for entrance tests and higher education along with individuals looking to upskill. 

In August last year, it bagged INR 100 Cr in a Series B funding round from Juvo Ventures, Sequoia Capital and Unitus Ventures. Prior to that, it raised $10 Mn as debt funding in February 2021. 

Its cap table includes InCred Financial Services, Vivriti Capital, and Northern Arc Capital, among others. It has raised a total of over $37 Mn funding to date, according to Crunchbase data. 

However, in the financial year 2020-2, Eduvanz reported a consolidated loss of INR 10.4 Cr. Meanwhile, its revenue stood at INR 14.4 Cr in the corresponding financial year, according to Tofler.

In India, the startup competes with the likes of Sequoia-backed Leap Finance. 

Talking about the education-focussed lendingtech startups, a slew of startups have bagged funding this year. In April, Financepeer was reported to be raising $35 Mn in Series B funding from QED Investors, Atlanta US and Avishkar Capital. 

In March, student loan fintech startup Kuhoo bagged $20 Mn in a seed funding round from WestBridge Capital. Prior to that, fintech startup Propelld, which forms partnerships with academic institutions, raised $35 Mn in a Series B funding round from WestBridge Capital, Stellaris Venture Partners and India Quotient. 

The development was first reported by Entrackr 

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.